What is typically a key benefit of purchasing a non-qualified annuity?

The key benefit of purchasing a non-qualified annuity is the tax deferral on investment growth. This means that any earnings or growth within the annuity are not taxed until they are withdrawn. This feature allows the investment to potentially grow more quickly because the individual does not have to pay taxes on the gains annually, providing an efficient way to accumulate wealth over time.

Other benefits, such as guaranteed lifetime income and options for early withdrawal, may be available with certain other financial products or under specific conditions, but they do not define the primary advantage of non-qualified annuities. Similarly, while non-qualified annuities can be appealing to high-net-worth individuals due to their tax advantages, they are not limited to this demographic, making them accessible to a broader range of investors.