How Does A Life Insurance Annuity Work? 
An annuity is a long-term savings plan that can be used to accumulate assets on a tax-deferred basis for retirement and/or to convert retirement assets into an income you can not outlive . An annuity is the opposite of life insurance . What they share in common is that both are insurance contracts . Life insurance provides financial protection against the risk of dying prematurely . An annuity provides financial protection against the risk of living too long and being without income during retirement . 