How are annuities different from life insurance?
Author: Ammon Yorke
Website: http://www.AnnuityYes.com
Added: Sat, Jun 24, 2006 8:47:41
Category: Annuity Questions
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With a life insurance policy, you invest in order to give your beneficiaries or dependents income when you pass away, as a part of your estate planning. With an annuity, your purpose is to accumulate money and be assured that you do not outlive your income.
Payments on a life insurance policy are made in a lump sum, while the annuity provides lifetime income to investors in monthly payments.
And lastly, the pay-out of the income of a life insurance policy is made after the investor is dead, but with an annuity you are paid when you choose to start withdrawing the money or the company pays you until you stop paying the required premiums.
See also: Annuities | Life Insurance | Investment About the Author:
Ammon Yorke answers frequently asked annuity questions at PrettyGreatAnswers.com.
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