What Are The Uses Of Life Annuities? 
Life annuities are designed to provide a stream of income that a person can not outlive . Every variation of annuity comes from this basic idea . This is a life insurance product , with guarantees and in times of uncertainty and risk . The applications vary as the needs vary . Some annuities accumulate money for intermediate goals , such as paying for college . The other underlying dynamic of an annuity is that it is a long term savings vehicle and so it is inappropriate for most short range objectives . 