Annuities

Life insurance is focused on providing a financial benefit to beneficiaries upon the death of the insured, while annuities are focused on providing a guaranteed income stream for retirement. An annuity is a financial product typically used for retirement planning, designed to provide a steady income stream in exchange for a lump sum payment or a series of payments. Annuities are offered by insurance companies and come in various types, each with its own features and benefits. The basic concept of an annuity involves an individual (the annuitant) making a lump-sum payment or a series of payments to an insurance company, which then invests the money and agrees to pay out a guaranteed income stream to the annuitant for a specified period or for life. Typically, an annuity provides income you cannot outlive.