First the good news: Demand for annuities has spiked in recent years as consumers begin to recognize their value as a safe, tax-deferred savings option.

Now the bad news: Most of those people who are buying annuities don’t fully understand the tax disadvantages of having money in an annuity that will eventually be passed on as a wealth transfer case.

As expected, the economic crisis at the end of 2008 sparked a flight to safety among investors, especially retirees who are looking to protect what was left of their savings. But a study by Harris Interactive on behalf of MetLife indicates that some went too far. The study, which polled 1,000 retirees, found that more than one-third (37%) keep the majority of their assets in liquid accounts, such as CDs, savings accounts and money market funds.

Income Riders have become an popular feature with Fixed Indexed Annuities. And it’s not difficult to understand why. Talk of 7% or 8% percent guaranteed returns is attractive. But they are not a one-size-fits-all type of product, suitable for anyone who wants to generate an income stream.

Bear markets are inevitable—a fact that surely hasn’t escaped your clients. But what they may not realize is that how much they lose during a market downturn may not be nearly as important as when the loss occurs.