Who Can Purchase Annuities? 
That is a great question ! Annuities are considered to be life insurance products , but they have some notable differences . The first is that unlike insurance , there are no requirements as to your health to purchase one . The second is that in many cases , annuities are paid for in one lump sum , not in monthly increments . The third , and perhaps most important , is that anyone can purchase life insurance , but not everyone can buy an annuity . The reason is that there has to be a `` suitability '' for the sale - the removal of the cash to purchase the annuity can not put you into a position of financial difficulty , or it is not a `` suitable '' '' financial venture . A good insurance company would not allow , for example , a person with a net worth of $ 50,000 to purchase a $ 30,000 annuity , and probably would decline one for an even lesser amount , depending upon the person 's financial state . Please consult with an agent , to see if an annuity is something that would work well for you . Contact me , if you would like more info . Thanks for asking ! 