Life insurance provides an immediate estate, the death benefit. An annuity is a vehicle to provide a safe, tax favorable way to save money for retirement. They are entirely different. If you put $1000 into an annuity and you die you get $1000 plus interest. If you put $1000 into a life insurance you would get the face value of whatever that $1000 would buy, depending on your age and health possibly over $100,000.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
The difference between annuities and life insurance are many. You don't have to be underwritten for an annuity for one thing, because in the case of annuities you are putting money into the account for the purpose of collecting it back in payments after and during it's accumulating interest. There are many ways that an annuity may be paid out or "annuitized".
There are several types of life insurance so to compare to an annuity would take considerable time and examples. But generally Life insurance is to provide monetary benefit for the beneficiary. While one pays into a life insurance policy over time, and in the case of Whole Life policies they accumulate cash value which may be accessed by the owner during their lifetime, generally the main purpose it to provide a benefit to the survivor(s) of the insured.
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There are several types of life insurance so to compare to an annuity would take considerable time and examples. But generally Life insurance is to provide monetary benefit for the beneficiary. While one pays into a life insurance policy over time, and in the case of Whole Life policies they accumulate cash value which may be accessed by the owner during their lifetime, generally the main purpose it to provide a benefit to the survivor(s) of the insured.