There are many ways to plan for your financial future, and both annuities and insurance should be a part of the mix. However, life insurance is best suited to providing for loved ones and clearing debts once you’ve passed away, while an annuity helps ensure that you can enjoy your retirement years to the fullest.

Annuities:

• Provides regular, steady cash flow to individuals throughout their retirement years. Incidentally, Expected life Expectancy for a man who reaches 65 is 83*; Expected life expectancy for a woman who reaches 65 is 86.*
  *U.S. Dept. of Health & Human Services
• Available to everyone.
• Contributions to qualified annuities are tax deductible from gross earnings and grow tax-free until distributions are made.
• After structured payments are made, an annuity begins paying the purchaser back — with interest.
• Regulated by state insurance commissioners.

Life Insurance:

• Provides a cash payout to surviving beneficiaries of the deceased policy holder.
• Typically requires a medical exam.
• Premiums are not tax deductible.
• Any claim to benefits is lost if ongoing premiums are missed, resulting in a lapsed policy.
• Regulated by state insurance commissioners.

This article is for informational and educational purposes only. It should not be used to make a buying decision. If you would like to speak with a financial professional, please use Annuity Alliance’s contact form.