|
A |
Annuity is a fixed payment
by an insurance company periodically to the policyholder
for a certain number of years when he is alive. Whereas,
life insurance serves to pay the insured's loved ones
after his/her death. The survivors benefit in the case
of life insurance. However, they are both long-term
financial plans. Annuities are also insurance products.
Usually they are considered as the best retirement
planning tool. Annuities are of two types, viz –
deffered annuity (which builds savings on a tax-deffered
basis) and immediate annuity which can be bought at the
time of or near retirement. This kind of annuity
guarantees a fixed regular income for the rest of your
life. Life insurance policy on the other hand provides
benefits to the loved ones of the insured by way of
income replacement, clearing of outstanding debt, etc. |
