There is much flexibility with variable deferred annuities. There is an investment choice of a range of stocks and bonds that can provide higher returns than with a fixed deferred annuity. However, the returns are not guaranteed like a fixed annuity type.

You also have the flexibility to transfer from one existing investment to another investment option tax-free.

Also most variable deferred annuities offer a death benefit, prior to annuitizing your contract. The guaranteed death benefit promises that your beneficiaries will receive no less than the amount you contributed in your annuity, minus any withdrawals you made. The death benefit is guaranteed even if markets have declined.