There are numerous forms of insurance that you should strongly consider purchasing in order to protect you and your family financially. Your long-term financial plan is something that you need to consider as well, which is why you should think about buying annuities and life insurance. However, what exactly is the difference between annuities and life insurance?
There’s one main difference between annuities and life insurance. Life insurance will help protect your family financially if you die too soon; it helps them meet any financial obligations you may have had while you are still alive and prevents their standard of living and quality of life from dropping.
An annuity helps to protect you in case you live too long. This may seem like an odd form of protection, but there’s a chance that you can outlive your assets, which would put you in a strenuous financial situation at an old age - an annuity will help provide you with financial protection in case this occurs.
There are two types of annuities, deferred and immediate. Deferred annuities accumulate in a tax-deferred product from which you can make withdrawals. Immediate annuities assure you don’t outlive your income and pay out one period after you’ve bought the annuity.
You should strongly consider buying both life insurance and an annuity as part of your long-term financial plan. For more helpful information about buying life insurance, be sure to contact out team at CCW Insurance today.