What is the difference between life insurance and an annuity?
Answered by 4 licensed agents
Answered by Jack Mayer on September 24, 2026
Broker Licensed in CA
Life insurance is a policy that pays out once you've passed away and that payment goes to the person/people/entity you've named as beneficiary. Some policies do have cash value components, which can be accessed, but they are generally not considered income vehicles.
An annuity is a product that works like a pension. There are a few different types, but generally you are putting money into the annuity for consistent payments later. Some are immediate (you put money in and payments start very soon after), some are deferred (meaning you usually wait 3, 5, 7, or 10 years to receive payments), some allow a single payment, some allow you to make payments over a period of time.
This is a very high level overview and further information and features can be obtained by reaching out to a life insurance agent.
Answered by Jim Mentink on September 11, 2026
Agent Licensed in ME, FL, IL & 8 other states
Both products are sold by insurance companies and your local Broker can help you find the best solution for you.
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Answered by Dean Chiapetto on September 24, 2026
Broker Licensed in VA, MD, NC, TN & WV
Answered by Toni Cormier on October 1, 2026
Agent Licensed in TX, AL, CA & LA, MS, NC & OK
Tags: Financial Planning Retirement
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