Deferred annuities (fixed or variable) may be considered the opposite of life insurance because annuities can help you protect against the possibility of outliving your resources. That is, an annuity can provide income for as long as you live. In addition:


* Taxes on annuity earnings are deferred until you begin receiving annuity payments.


* You can save as much as you are able. Unlike IRAs and 401(k)s, there are no tax code limits on the amount you can put into an annuity.

* If you die before your annuity payments begin, annuities usually have an insurance feature that guarantees your heirs will receive at least the amount you contributed. Some have larger guaranteed death benefits.


* You’ll have flexibility as to how you receive annuity payments.


Among the many annuities on the market, some are much better (and less expensive) than others. A financial advisor you trust may help you make a good choice.