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Is annuity a good investment?

There are a number of well-founded critical comments on annuities, but it's worth noting that there are several potential benefits that annuities bring to their owners, according to Yahoo Finance.
Is annuity a good investment?

The first advantage is income guarantee. Even in case of market decline, the insurance company must make payments to the client. However, if the life insurance company goes bankrupt, you may not get anything, so it is important to only work with reputable and stable insurance companies.

Another reason why annuity can be a good investment is joint fund use. The spouse can always be included in the contract.

If you've exhausted other retirement account options, the annuity guarantees lifetime benefits.

Why annuities can be a bad investment

Annuity is often the subject of harsh criticism, mainly because it provides a low return compared to relatively simple investment strategies, but LIC pension plans are calculated for decades, therefore the payments are low.

Annuity in the United States is criticized for the high commissions of insurers, consultants, and brokers. Their premiums can sometimes be up to 7% of retirement savings.

Source: https://finance.yahoo.com/news/annuity-good-investment-223443887.html

Photos are from open sources.

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