In every part of the world, many people prefer to invest for retirement so as to gain certain advantages and a tax break usually referred to as a tax deferred. People with annuities get monthly stream of income. Annuities are divided into different categories such as Fixed or Variable annuities, Deferred or immediate annuities, Fixed period, Fixed amount or Life time annuities, Qualified or Non qualified annuities and lastly single premium or Flexible premium annuities. But the annuities can also be classified in single category like nonqualified single premium deferred variable annuity.
Annuities have some features which make them most attractive such as investment earnings with tax deferral, there is protection from creditors, many annuity companies provides so many investment options for one to choose from, there is also a free tax transfers between the investment options, a monthly income which is for lifetime and dependants’ benefits.