When Are Annuities Appropriate? 
Non-qualified deferred annuities permit tax deferred accumulation in the policy . If youre in a high tax bracket , deferring ordinary income tax is a benefit in itself . If youre receiving Social Security , you can defer your annuity gains without mandatory required distributions , which could have an impact on taxation of your Social Security Benefits . Annuities can be annuitized over your lifetime generating lifetime income you cant outlive . If you annuitize your annuity for lifetime income you cant out live , the basis is paid over your life expectancy tax free as part of the payment until its exhausted . Mortality credits are added to the interest rate crediting a stream of income that can be competitive with other interest bearing accounts . 