What Is The Difference Between Life Insurance And Annuities? 
Life insurance generally pays the entire face amount to a beneficiary upon the death of the Insured , regardless of how many premiums have been paid . Annuities generally take the premium paid in , and pay it back to the annuity holder , with interest . That being said , there are cash value life insurance policies where the policy holder can use the money while still alive . There are annuities that pay a guaranteed death benefit . In other words , there are ways that life insurance policies and annuities can overlap , depending on the type of policy you get . But the general difference in design is as stated above . 