TAX-DEFERRED GROWTH.
(Why it's better while on your journey to retirement.)

As cash values build in the annuity, they do so without income taxes. This treatment is called tax-deferred growth. Over time, more money will be accumulated when taxes are deferred. The reason is a 3-part benefit: Annuity owners earn interest on the cash value, interest on the interest earned, and interest on money they would otherwise pay in taxes each year.  

In the event the annuity is surrendered, income taxes would be payable to the extent of any gain.