Single Premium Deferred Annuity

[Gsquared]

I would appreciate thoughts on Single Premium Deferred Annuities. They can be had for no upfront charge and no surrender charges (after a commitment period). As a major point of comparison with CDs, are you really balancing a higher interest rate and State (less secure) insurance versus a lower interest rate and FDIC insurance?

Pros:

• Guaranteed interest rate for XX years
• Tax deferral on interest (If not taken as distribution)

Cons:

• Money is tied up for XX years
• More significant surrender charges versus CDs
• Not FDIC insured, but (some) state insured to $XXX limit

Comments on these pros and cons? More to add?

Thanks!