Is Life Insurance An Annuity? 
No , life insurance is not an annuity , even though both life insurance and annuities are sold by life insurance companies . Life insurance is usually purchased to provide for others after the insured person dies . Annuities are usually secured to provide for income while the insured person is still alive . However , life insurance can also provide income while the insured person is alive , and annuities can be saved to provide for loved ones after the insured person 's death . Also , life insurance proceeds can be collected by the beneficiary in installments , as in an annuity . So there is some overlap , but they are not the same product . 