When Are Annuities Good? 
Annuities are good when a person wants to avoid risk of loss and desires a legally enforceable contract to receive principal and interest returns . Annuities are coveted when people deem it prudent to take distributions over time to making certain the income does not run out . The tax code allows advantaged distribution corridors based on established actuarial tables . The annuity owner can keep the option to direct funds to desired beneficiaries in most contracts . 