What Are Deferred Annuities? 
Tax deferred annuities are mortality insurance products . Tax deferred annuities permit your contributions and earnings to accumulated tax deferred . The earnings or crediting method have three basic options : fixed interest rate crediting , indice crediting and separate sub accounts - using equities and bond investments . Tax deferred annuities are generally purchased to generate income in the future , even lifetime income you cant outlive . During distributions the gain in the policy is taxed as ordinary income . 