In Annuities for Dummies: A Buyers Guide, annuities expert witness Stephen George writes:
Buying annuities requires studying features and comparison shopping. Annuities are not considered investments, but evaluating them requires similar comparisons of safe returns against other investments like CD’s, money market funds, savings accounts, high grade bonds and treasury bills over similar terms. If held to maturity, annuities can avoid probate while guaranteeing no risk to principal, income for life, minimum interest returns, upside-only index interest participation, immediate interest bonus, and legal insulation from creditors in some states. Many people buy annuities to protect their safe money, or money they cannot afford to lose.