Life happens fast, and the truth is there’s nothing as valuable as peace of mind.
Life insurance acts as a contract between an insured person (policyholder) and an insurance company, where the insurance company promises to pay a selected beneficiary a sum of money upon the policyholder’s death. People buy life insurance for many reasons. Often it is purchased by the policyholder to offer peace of mind to the beneficiary in the event of their untimely death. As such, it would alleviate any financial hardships they may endure as a result of their death.
Ensure a reliable retirement income.
Annuities are investments issued by insurance companies that can be used to help build a guaranteed income stream or a retirement nest egg. With an annuity, you make a large payment to an insurance company upfront, and in return, you receive set monthly payments for as long as you continue to live. When comparing life insurance and annuities, the biggest difference is that life insurance is designed to help protect against a financial loss for others after your death. An annuity helps protect you financially while you are still alive. Qualified annuities are funded with pre-tax dollars and non-qualified annuities with post-tax dollars.