How To Evaluate Annuities? 
Tax deferred annuities allow the annuity owner to accumulate cash values while deferring ordinary income taxes on the gain . Tax deferred annuities have three basic crediting methods : interest rate , index and separate sub accounts using equity and bond investments . The contractual language is important to understand , so you can evaluate the financial virtues of the policy . You also need to establish your financial profile to determine your risk tolerance and financial goals for product suitability . 