Life Insurance vs. Annuities
Can life insurance replace an annuity?
Life insurance and annuities serve different purposes. Life insurance provides a death benefit if you die too soon. Annuities provide income if you live too long. They are complementary, not interchangeable. However, some permanent life insurance policies have living benefits that can provide income in retirement.
Key Points
- Life insurance: provides death benefit if you die too soon
- Annuities: provide income if you live too long
- Complementary, not interchangeable
- Permanent life insurance with living benefits: can provide income in retirement
- An independent agent can help you evaluate life insurance vs. annuities