What Is The Difference Between Annuities And Life Insurance? 
The difference between annuities and life insurance are many . You do n't have to be underwritten for an annuity for one thing , because in the case of annuities you are putting money into the account for the purpose of collecting it back in payments after and during it 's accumulating interest . There are many ways that an annuity may be paid out or `` annuitized '' . There are several types of life insurance so to compare to an annuity would take considerable time and examples . But generally Life insurance is to provide monetary benefit for the beneficiary . While one pays into a life insurance policy over time , and in the case of Whole Life policies they accumulate cash value which may be accessed by the owner during their lifetime , generally the main purpose it to provide a benefit to the survivor -LRB- s -RRB- of the insured . 