An annuity is an insurance contract that is unique in its ability to guarantee a steady stream of income for life. This and other insurance features, such as death benefits, are included in the cost of the annuity. Fees may be charged for partial or complete withdrawal from a deferred annuity in early years of ownership. These withdrawal or surrender charges are often eliminated after a time specified in the contract. Or they may be waived under special circumstances such as death, nursing home confinement, or terminal illness. Some deferred annuities allow annual withdrawals of a specified amount without triggering a surrender charge. Other fees or charges also may be applied for transactions, market value adjustments, contract fees, and--in the case of a variable annuity--portfolio management. Ask your agent or life insurance company for a description of applicable charges and fees.