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It would depend on weather it is an immediate or a differed annuity contract.

An immediate annuity would provide guaranteed income for a specified number of years or over the life time of the insured regardless of how long the annuitant lived.

A deferred annuity provides for long term tax deferred growth and if its not in a qualified plan the annuity holder is not limited to the amount deposited each year.

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Q: Application of annuities in financial management?
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