There are two kinds of Hawaii annuities: Immediate Annuities and Deferred Annuities. Immediate Annuities are transacted by giving the insurance company money and the company promises to make immediate regular payments to you over your lifetime.

Hawaii Deferred Annuities allow your money to grow or accumulate through tax-deferred interest accumulation over a period of time before the insurance company begins paying you.

There are a number of good reasons to consider a deferred Hawaii annuity as part of your financial retirement plan:

- You postpone paying income taxes on any earnings until you withdraw money, typically during retirement, when you may be in a lower tax bracket. All earnings grow tax-deferred.

- You can put in as much money as you want. Unlike Individual Retirement Accounts (IRAs), there is no IRS restriction on the amount that can be contributed annually to deferred annuities with your after-tax money.

- You can, however, use a deferred annuity to fund your traditional or Roth IRA, in which case you would operate within IRA limitations.

In Hawaii you can provide death benefits to your heirs. If you die prematurely, your annuity can offer a death benefit to your beneficiaries without the costs and delays of probate. Your beneficiaries will never receive less than what you have contributed (less any withdrawals).