Life insurance is a product that gives your survivors a benefit if you die too soon. So, while life insurance can be used for cash value and retirement income and other things, life insurance is usually a way of generating cash for your survivors.
Annuities are a way of allocating your funds so that you have income for the rest of your life. Again, annuities can be used for estate planning and other reasons, but annuities usually are a way of distributing your own money back to you with interest.
Based on those very simplistic explanations, the best reason for purchasing life insurance rather than annuities would be to provide for your loved ones if you do not have much saved up.
President, Lane Independent Agency, Southern California
There are many reasons to buy annuities, but there are also many reasons to buy life insurance. Many people should purchase both. With life insurance, you gain an instant legacy. After that first premium is paid, should you die, your heirs have an instant estate. You leverage the risk onto the insurance company. By paying perhaps $200 your family may gain a payment of $250,000 shortly thereafter. No annuity can do that. Thank you. GARY LANE.
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Annuities are a way of allocating your funds so that you have income for the rest of your life. Again, annuities can be used for estate planning and other reasons, but annuities usually are a way of distributing your own money back to you with interest.
Based on those very simplistic explanations, the best reason for purchasing life insurance rather than annuities would be to provide for your loved ones if you do not have much saved up.