What are the advantages of annuities?
You can buy an annuity in one considerable amount payment or in small periodic payments over time. In either case, the insurance company promises to pay back the present value of the annuity in future, along with the fixed rate of interest earned on the investment. You may want to get paid in lump sum or over a period to ensure a stable guaranteed income for the future. Investments in annuities are safe and secure. Annuities are treated favorably by the income tax clauses and also offer a deferred tax benefit, which means you can pay the taxes on your income at a later date when it is convenient for you. This helps growth in your saving.
