2006-09-01 05:23:36 · 6 answers · asked by Keano 1 in Business & Finance ➔ Insurance
Life Insurance is esentially a bet that you are going to die and if you do, the insurance company pays out the money to the person who you appoint. The monthly cost of an insurance policy depends on many factors including your current health, the amount of money you want paid out, and the length of time you want to be insure for (10 years, 20 years, lifetime).
An annuity can take one of several forms. Normally, it is where you give a lump sum of money to an investment firm. The firm will then pay you a monthly payment from a certain date until you die (there are some variations of that though). The amount of the monthly payment depend on how the money is invested, when the monthly payments begin, what happens to the lump sum when you die, etc..
Insurance is basically meant to protect someone in the event you die (such as a significant other or kids). There are several reasons you might want an annuity, but the most common is to have income when you retire. In short, life insurance benefits someone else, annuities typically benefit you (but like I said, not always)
2006-09-01 05:33:34 · answer #1 · answered by Slider728 6 · 0⤊ 0⤋
I assume that you mean "Life Insurance" and "Annunities"
although the word "Assurance" can be used, it is not common in the United States, only in the UK.
A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.
A variable annuity offers a range of investment options. The value of your investment as a variable annuity owner will vary depending on the performance of the investment options you choose. The investment options for a variable annuity are typically mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three.
As with all most insurance polices, Life Assurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people name in the policy.
2006-09-01 05:41:32 · answer #2 · answered by Agent Starling 2 · 0⤊ 0⤋
Life Insurance: I assume you mean whole life insurance. You need to pay a fixed monthly/yearly premium and part of the money will be used to invest, part to pay for the insurance coverage and part for the commission /admin charges.
Annuity: a pre-arranged monthly income from an investment vehicle (a very short explanation). Best to talk to the bank or financial advisor on this.
For life insurance, study how it operates as it could be a good investment vehicle. Do not just take what the agent says, s/he always has the commission in mind.
2006-09-01 09:36:04 · answer #3 · answered by Laid Low 1 · 0⤊ 0⤋
life insurance means coverage of risk annunities in means annuities means in regular interal money will be paid
2006-09-04 21:34:05 · answer #4 · answered by sathishshivakumar 2 · 0⤊ 0⤋
On life insurance you pay a given premium and a benefit is payable to your beneficiaries upon your death.
On an annuity, you give them a specified amount of money and it earns interest.
2006-09-01 05:29:06 · answer #5 · answered by angelabryant921 2 · 0⤊ 0⤋
Life insurance is protection against dying too soon. Annuities are protection against living too long.
2006-09-01 05:30:15 · answer #6 · answered by deep5223 4 · 1⤊ 0⤋