Some annuities have the potential to earn interest based on the growth of an external index (we call this "indexed interest"). You can choose one or more external indexes every year (or "allocation options"), depending on your financial goals. Other types of annuities offer growth potential through variable investment options. 

You don't have to pay income taxes on the earnings in your contract until you take money out of your annuity. Tax deferral may help the money in your annuity compound over time, for even greater accumulation potential.

Annuities can help protect the money you place in your contract (the "principal"). Some annuities protect all of your principal from market downturns, while others offer greater potential in exchange for some market risk, including the risk of losing principal.

After a period of time specified by your contract, annuities provide guaranteed retirement income. Some annuities let you choose from a variety of income options - and some even offer the opportunity for income increases in retirement. These options may either be built in to the contract or optional and available for an additional cost.