What Are Deferred Annuities Best Suited For? 
What are deferred annuities best suited for ? The challenge with this question is that the term deferred annuity has at least two `` definitions '' . I will describe two scenarios and if your question is not answered , please do not hesitate to contact me . A deferred annuity can refer to exchanging a lump sum for a guaranteed income at a point in the future . In this situation , a deferred annuity would be suited for someone who wanted a guaranteed flow of income with no management responsibilities . A life annuity may or may not include a guaranteed payout . There are different options , so ask your insurance agent for details . In addition to the income amount , taxation during the the deferral period and of the income flow should be considered . In Canada , a deferred annuity can also refer to Guaranteed Investment Annuities -LRB- GIA -RRB- and Segregated Funds -LRB- variable annuities -RRB- . Both of these are issued by insurance companies and offer the option of an annuity in the future . Since they are issued by insurance companies , they also offer guarantees not offered by other institutions for non-registered investments . These include potential creditor protection and estate planning opportunities , such as bypassing probate . Segregated funds are similar to mutual funds , but they offer maturity and death guarantees . In addition , some segregated funds include the `` locking in '' of gains . Depending on your individual situation , there could also be some tax advantages to these plans . These type of deferred annuities are best suited for individuals who are looking for , and would benefit from , the additional features and guarantees . This is an overview of a potentially complex subject . If you would like to work with a local Retirement Planner , you could start with a Google search . For example if you search for , retirement planner Halifax or retirement planning Halifax , my name along with several others will come up . It will be the same in your community . If you have further questions , or feel that I could be of assistance please do not hesitate to contact me . 