Rick Case Insurance Agency Blog
Annuities and life insurance are policy products issued by various insurance companies. Annuities are distinct financial products that are very much different from life insurance, but they sometimes have similarities. Although both products provide death benefits, they are very special options that serve different purposes.
In this article, you are going to learn about the similarities and differences between the two distinct policy products. You will be able to compare both and choose which one is the better retirement option.
Life Insurance vs. Annuities
In a nutshell, life insurance plans provide income for dependents once the policyholder prematurely dies. Annuities provide income to the policyholder if he or she lives beyond the foreseeable lifespan stated in his or her policy.
Three Kinds of Annuities
Annuities provide tax-deferred savings for retirement income. As mentioned before, annuities provide death benefits to beneficiaries, but it is not free from taxes. Below are the three kinds of annuities:
Which is better for retirees?
If your long term plan is to help your dependents in paying for your memorial expenses, settling bills, and leaving them a legacy, life insurance is what you need. But if you plan on enjoying your retirement age, then annuities should be your choice.
It all depends on what purpose you lay down for yourself or your family. Life insurance is a good option if you want your dependents to enjoy the “legacy” you left them tax-free. The good thing about life insurance is that you can convert it into annuities if you want!
At Rick Case Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (405) 722-5556. Get your free quote today by CLICKING HERE.