What Is The Risk Of Annuities? 
One of the biggest advantages to Annuities is the low risk . As long as you follow the terms of the contract and do not surrender early , you will never lose money on an Annuity . Indexed Annuities are tied to the Stock indexes and can provide some of the gains without the risk of the stock market . Due to the guarantees in the contract and lower risk , you will not have the higher gains of riskier investments , but it is still competitive since you do not have to worry about the losses . Never tie up all of your money into any long term investment vehicle . Companies are now required to have suitability requirements so make sure you understand what you are purchasing and the surrender terms . 