Are you one of the many individuals wondering what is the difference between life insurance and annuities? We understand this can be a complex subject, so we have formulated this compare and contrast informational piece for your convenience:
Main Reason for Buying…
- Annuities – Annuities are purchased to ensure you do not outlive your income and to accumulate tax-deferred income over the years.
- Life Insurance – These policies provide your dependents with financial stability when you pass.
Pays Out When…
- Annuities – After the term of your annuity expires
- Life Insurance – When you pass away
Pays Out in the Form of…
- Annuities – Deferred annuities pay out in a single sum of income, whereas immediate annuities provide a lifetime of income
- Life Insurance – Paid out in a single sum to your dependents
Typical Age to Purchase Ranges From…
- Annuities – Typically purchased in between an individual’s 40s and 80s, but are beneficial for individuals of all ages. The sooner you purchase the more income you will accrue.
- Life Insurance – Typically purchased anywhere from 25-60, but like annuities, it is most beneficial to the consumer when purchased early on in life.
Contact VGW Walker Insurance in Austin for all of your Texas life insurance and annuity needs.
