Annuities: Special Investments Whose Time Has Come, Part I

Duff, Richard W.
March 2000
Journal of Financial Planning;Mar2000, Vol. 13 Issue 3, p36
Academic Journal
This article discusses some special qualities of nonqualified annuity contracts in the U.S. Annuities are primarily identified with income tax deferral but an annuity policy may be uniquely protected by law from creditors and insurer failure as well. With a financial planner's creative touch, a policy owner can save taxes on Social Security payments and gain an advantage in Medicaid planning. Moreover, the law provides special safeguards for annuities. In all 50 states, insurers have formed associations to assess member companies for policyholder losses if a carrier fails.


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