Life insurance vs a retirement annuity: Why get both?
Tailoring a financial plan specifically for your needs requires understanding how different insurance and financial products work and how they can help you achieve your financial objectives.
Both life insurance and retirement annuities (RA) provide financial assurance benefitting you and your loved ones. However, they shouldn’t be considered interchangeable. Each plays a specific role in your financial plan and the security of your family’s financial future.
The difference between life insurance and an RA
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Why do you need both?
Financial stability relies on the continued access to your income or maintaining an amount that meets your needs. When your needs are met by these types of products, there’s no reliance on your family for financial input, which means that they can focus on their financial growth.
Both provide a financial safety net but in different contexts: before and after death. The point of your RA is to create provision for having (enough) money to enjoy your remaining years after you retire. Your life insurance provides you and your family with money to cover their (and your) financial obligations in the event of death, disability ,or critical illness.
Leave a legacy of prosperity and get flexible life insurance designed for your needs and your budget.
Disclaimer: This article is solely intended for information. It does not constitute financial or investment advice or recommendation. Speak to a financial adviser or registered financial professional before making any financial decision(s).