No, life insurance is not an annuity, even though both life insurance and annuities are sold by life insurance companies. Life insurance is usually purchased to provide for others after the insured person dies. Annuities are usually secured to provide for income while the insured person is still alive.
However, life insurance can also provide income while the insured person is alive, and annuities can be saved to provide for loved ones after the insured person's death. Also, life insurance proceeds can be collected by the beneficiary in installments, as in an annuity. So there is some overlap, but they are not the same product.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The insurance companies that issue life policies often issue annuities as well. Actuaries use data to compute rates and benefits for the life policy. Then they use almost the same data to apply to the annuity. The products are actually opposites. A life insurance policy protects against premature death. An annuity protects against living to long and outliving your resources. The life insurance policy starts with a small premium and promises a very large death benefit. The immediate annuity starts with a large premium and promises a lifetime income.
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However, life insurance can also provide income while the insured person is alive, and annuities can be saved to provide for loved ones after the insured person's death. Also, life insurance proceeds can be collected by the beneficiary in installments, as in an annuity. So there is some overlap, but they are not the same product.