What Is The Difference Between Life Insurance And An Annuity? 
In general , life insurance pays out the cash proceeds when the insured person passes , while annuities pay out the cash proceeds when the insured person is alive . Some life insurance policies have a cash value that can be borrowed from , but the cash must be paid back to keep the policy intact . An annuity is designed for the purpose of making regular payments to the annuity holder while still alive . 