Life Insurance vs Annuity
For those who are not financial experts, understanding the key differences between life insurance and annuities can be very difficult. Expanding your understanding of these two concepts is important, especially if you are looking to secure your financial future for not only yourself but for your loved ones as well.
In short terms, life insurance is used to help provide financially for your loved ones if you were to pass away.
On the other hand, annuities are tax-deferred plans that allow you to grow your money and establish an income stream.
At National Educational Services, we want the best for you and your loved ones as well, that’s why we want to help you understand these concepts! Keep reading to learn how you can prepare and protect your financial future.
Protect Your Financial Future – Life Insurance
Life insurance is used in order to protect your loved ones financially after your death.
These plans help secure your loved one’s future financially since death benefits tend to help with the costs of replacing income and other financial needs such as:
- Funeral costs
- Mortgage payments
- College funds
- Day-to-day living expenses
If you decide to purchase a life insurance policy, this is not just an investment for yourself, rather it is an investment in those you love and want to take care of.
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Prepare For The Financial Future – Annuity
An annuity is an option that can help you meet your retirement needs, financially.
Annuities work to create income for you and there are multiple different ways these can be designed. With annuities, you are able to set up payments that will be paid out for your whole life, for a specific time period, or a combination of both of these options.
There are also many other benefits of annuities. Some of these benefits are:
- The opportunity to grow your account value, tax-deferred
- The chance for a future income stream that cannot be outlived
- The chance of a lump sum benefit for the surviving spouse
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How Do Annuities Work?
You are able to purchase an annuity by giving your insurance company a lump-sum payment or by setting up a payment plan over time. After this, your insurance company will invest your money in multiple ways, depending on the specific annuity you choose.
You are also given the option to choose an annuity that will may payments back to you instantly. This option is referred to as an immediate annuity. Additionally, you are able to choose an annuity that delays the payments for a certain period of time.
Start Planning Today! Contact National Educational Services
Both life insurance plans and annuities can help you protect and prepare for the financial future of you and your loved ones.
Contact National Educational Services to talk to an agent about planning for your future today. Fill out the form below, and we will be in contact with you shortly!
