Annuities and life insurance* have a lot in common. In both cases, you pay money to a company that promises to give it back (and then some) at a later date. Simple, right? But things can get a little fuzzy after that.
In blunt terms, life insurance is for the loved ones who are left behind when you die. Maybe it helps your heirs pay final medical expenses, funeral expenses or maybe it helps them continue living in their accustomed style.
Annuities can be used for a variety of purposes, including assuring you a lifetime’s worth of income, no matter how long you live. They can fit well into almost any retirement plan.