Medicare Supplement Store Blog
It’s a tough decision to choose between an annuity and life insurance. Both policies have their advantages and disadvantages. But which one is best for you? To help you make the right choice, we’ll outline what annuity versus life insurance means, how they work, and how they compare to each other.
An Overview of Life Insurance vs. Annuity
It's easy to see why these two products are often marketed as the "opposite" of each other. The difference between life insurance and annuity is how you earn your income. Life insurance pays out when the policyholder passes away, whereas an annuity pays out in perpetuity.
How Life Insurance and Annuity Works
Life insurance is simply a contract between you and an insurance company to pay you a lump sum upon death. The money is safe and sound in your beneficiary’s account. You can choose whatever purpose you want your money to go to, and the beneficiary has the freedom to decide what they do with the money.
An annuity is a great option for investors who want to get exposure to the market without the expenses and risks associated with an initial investment. More so, annuities are a great way to get a reliable income from your investment.
You’ll receive regular payments that will help you grow your retirement income.
Types of Life Insurance
Life insurance varies in plans, but it generally falls into two categories: permanent and term.
Term Life Insurance is designed to cover you for a set term. Advance your savings goals by investing in a long-term life insurance policy. With a fixed-term policy, the investment you make is guaranteed for 20, 30, or even 60 years.
Permanent Life Insurance is a form of personal insurance designed to help policyholders protect their assets for future needs.
Why You Should Consider Annuity
Many people worry that they will not have enough money to enjoy life in retirement. It is developed to help ease these concerns and allow retirees to enjoy a comfortable retirement without worrying about the future. Yes! You can have a financial cushion with a long-term annuity.
At the Medicare Supplement Store, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (732) 252-8828 or Click Here to request a free quote.