What Are The Disadvantage Of Annuities? 
The main disadvantage of Annuities is that your money is not 100 % liquid until your term is over . Some annuities have more liquidity than others ; most offer 10 % yearly penalty free liquidity . Some offer up to 20 % yearly liquidity , while some just offer 5 % . Most deferred annuities allow complete liquidity in the event of a terminal illness or a Long Term Care need . This is why it is important to work with an experienced independent agent who can evaluate your needs and help you find the right product for your situation . Another commonly cited disadvantage are `` high fees '' . But in fact , only Variable Annuities automatically include fees . But the fees do tend to be high in most peoples opinion . It is important to remember that a `` disadvantage '' all depends on perspective and what your needs are . 