Both annuities and life insurance should be considered in your long-term financial plan. While both include death benefits, you buy life insurance in the event you die too soon and an annuity in case you live too long. In other words, life insurance provides economic protection to your loved ones if you die before your financial obligations to them are met, while annuities guard against outliving your assets.

Both annuities and life insurance should be considered in your long-term financial plan. While both include death benefits, you buy life insurance in the event you die too soon and an annuity in case you live too long. In other words, life insurance provides economic protection to your loved ones if you die before your financial obligations to them are met, while annuities guard against outliving your assets.

There are two main types of annuities—deferred and immediate—and two main types of life insurance—term and whole life. The chart below compares them.

Why is disability insurance important?

Few people ever anticipate experiencing an illness or accident that might cause them to miss months or years of work, but it can happen. Disability insurance can help you stay on top of your finances. When you don’t have to worry about how to replace your income, you can focus on decisions regarding your health. Because of the financial stability, disability insurance benefits can provide to your household, getting it even when you are young or in good health can be a savvy financial planning move. 

Even over 55, only a small percentage of the population will need long-term care before they are in their 70s or 80s.