Reducing the tax incentives to participate in 401(k) plans – one idea the president and some on Capitol Hill are considering to avert the fiscal cliff – has led some observers to speculate that variable annuities will become more important in 2013 as the best remaining tax-deferred savings vehicle.

But insurance expert Glenn Daily, a variable annuity skeptic, remains firm in his opposition. Asked, in an interview with AdvisorOne, whether the fiscal cliff would increase demand for the much maligned product, the New York-based fee-only advisor refused to speculate, saying, "I don't know. We'll have to wait and see."

While there are some cases in which Daily says variable annuities are advisable, the independent insurance consultant's main advice about VAs continues to be: Stay away!