Why Should I Buy Annuities? 
Non-qualified annuities that are annuitized for the life of the annuitant guarantee life time income based on the annuitants life no matter how long the annuitant lives . Part of the annuitized payment is return of basis -LRB- tax free -RRB- amortized to life expectancy with some of the gain as well . When the basis is exhausted then the payment is entirely gain and taxable as ordinary income . That can be a good idea . But product suitability is very important and one of the items of suitability is a establishing a risk tolerance assessment . Non-qualified deferred annuities have three basic crediting methods : fixed interest rate crediting in an annuity , indice crediting in index annuity and crediting or sometimes debiting in separate sub accounts in variable annuities . Was you determine which crediting method fits your risk tolerance , then you should decide how long your annuity position should be and does the policy have any benefits for maintaining it in force . 