Annuity

Life Insurance

Designed to provide a steady stream of income to the policyholder during retirement or after a lump sum payment

Designed to provide financial protection to the policyholder's beneficiaries in the event of the policyholder's death

Premiums are generally higher than the premiums for Life insurance premiums because annuities provide an income stream

Premiums for life insurance are generally lower than the premiums for annuities

Annuities are purely investment products

Life insurance policies may include an investment component, such as a cash value

Annuities provide a stream of income payments over a specified period of time

Death benefit from a life insurance policy is paid out in a lump sum

Annuities are typically purchased by individuals who are approaching retirement age

Life insurance policies can be purchased at any age

Annuities can be considered a higher-risk investment because they are tied to the performance of the financial markets

Life insurance is considered a low-risk investment because it provides a death benefit

Annuity income is taxed as ordinary income

Life insurance death benefits are generally tax-free

Annuities generally have limited liquidity options

Life insurance policies can be surrendered for a cash value