Annuities are long term longevity income products. Designed to provide income you cannot outlive, no matter how long that is. They look and act like defined benefit pension plans and/or social security income benefits.
The longer you delay the income distributions the higher the income amount you will receive. Annuities are ideal for clients who want a steady, competitive income stream in retirement or who are uncomfortable investing in the stock market.
Annuities provide guaranteed income, versus equities, which may provide growth and income, but based on non-guaranteed basis.
You cannot compare Annuities to equity products as they are not true investment vehicles, but income producing vehicles. Some Annuities may offer a Optional rider, which may provide additional income in the event of impairment.