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Annuities are referred to payments made to life insurance companies that provide a regular income for a determined period of time. It is important to remark that earnings are tax-deferred through the stage of accumulation, and usually, annuities are used for programs of retirement pensions. As annuities are tax-deferred products that combine traits of insurance policy and investment, they have advantages and disadvantages. There are two sorts of annuities, fixed annuities, in which a fixed rate of interest is paid, or variable annuities, which give you the possibility to choose how to invest your money.