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What is the difference between an annuity contract and a life insurance contract?

April 26, 2017Annuity contract difference Life Insurance

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What is the difference between an annuity contract and a life insurance contract?

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A life insurance contract is designed to meet the needs of survivors(i.e., beneficiary) with a sum of money that far exceeds the value of the premium(s) if the insured should die while the contract is in force. An annuity contract is designed to support the owners future income requirements by providing a vehicle which can accumulate and/or liquidate a sum of money during his/her lifetime.