Is A Deferred Annuity An Insurance Contract? 
An annuity , like a life insurance policy , is a contract . Additionally only life insurance companies can issue annuities . This sometimes becomes a confusing issue . Many people invest in annuities at their local bank . It is important to understand that the person in the bank is acting as an agent for the insurance company . The bank itself is not a party to the contract , only yourself and the insurance company . It 's critical that you not be under the impression that the bank is providing any financial security to your investment , they are not . There is also sometimes confusion with 403 -LRB- b -RRB- plans . 403 -LRB- b -RRB- plans are retirement savings vehicles available to many teachers , hospital workers and certain government agencies . When they were first developed the funding vehicle had to be an annuity , and they took on the moniker of TSA -LRB- Tax Sheltered Annuity -RRB- . Today a 403 -LRB- b -RRB- may use a variety of investment vehicles , usually mutual funds or managed money accounts . However many people still use the words TSA , annuity and 403 -LRB- b -RRB- interchangeably . This is technically incorrect and causes a lot of confusion with investors . 