Most people shop for life insurance with the intent of taking care of their loved ones after they're gone. Ideally, you'd like to live long enough to take care of them yourself. But what if you outlive your retirement savings? An annuity may be just the type of insurance you're looking for.
An annuity is an agreement between you and an insurance company that will provide you with a lifetime income. It may be purchased with a single payment or with a series of payments. If multiple payments are more convenient, you will deposit premiums with the insurance company which will earn interest for the duration of your agreement.
When you're in need of further income, usually in retirement, your annuity agreement can provide you with a guaranteed income that you can never outlive. And, if you die before your annuity matures, many annuities will provide a death benefit to your beneficiaries equal to the total amount contributed, less any withdrawals or fees.