Annuities are specifically designed to address one of the biggest concerns of today's investors - the possibility that you or your spouse could outlive your long-term savings. This may be an even more significant concern to women, who statistically are more likely to outlive their spouses.

An annuity is a contract with an insurance company to provide regular income immediately or at some time in the future for a specified period (e.g., the lifetime of an annuitant or an annuitant and his/her spouse), typically during retirement years. In return, an investor deposits a sum of money with an insurance company, which grows tax-deferred until withdrawal, or makes periodic payments.

There are two types of annuities: variable annuities which provide access to growth-oriented (ownership) and income-oriented (loanership) investments through a choice of mutual fund subaccounts, and fixed annuities that guarantee a fixed rate of return for a specified period of time. Thus, fixed annuities are like a CD, but are tax-deferred. A rate of return is locked in for a period of 1 to 5 years after purchase and then adjusted annually according to market conditions.