Annuity insurance is an excellent way for individuals to prepare for their retirement. Typically, it involves investors providing a certain amount of funds to insurance companies who are able to grow these investments over time and provide a return. One of the more common reasons why a person will invest in this type of financial product is in order to provide for his or her family should they happen to die early on. This way the family will not be in need of funds should the insured person die early as they will be receiving payments each month for an agreed upon length of time.

The basic idea behind annuity insurance is to substitute cost for security; knowing that if something should happen to you and you die early you will still be able to provide for your family. Basically you will be incurring cost in order receive the benefit of eliminating risk.

As with any investment, there are certain risks involved. One such risk is dying too early before you have had a chance to accrue the premium required. Instead of having the funds already paid into the account revert back to the company, there are guaranteed options available so the money you have already paid in will be distributed amongst your beneficiaries whom you name. The main benefit of choosing this form of investment is that the recipients will be able to collect regular payments for the rest of their lives once you pass on.

Of course, families have many other risks besides death that lifetime annuity insurance may cover. There is also the risk of the disability which can prevent a person from earning a living and providing for their family as well. Purchasing this service will protect you in case you become unable to work and you will receive payments for the rest of your life in case something like this were to happen to you.

Purchasing annuity insurance is not always the best decision, and it will depend on your own specific circumstances whether or not it is right for you. The level of risk will play a large part in your decision as well since it will not always justify the purchase of this financial product. However, when this investment opportunity is used correctly it can provide you or your spouse with a secure retirement if something should happen to you that would prevent you from working and providing an income.

If you considering this investment and are unsure if it is right for you, then you may benefit from having an experienced financial advisor who is able to show you the ropes and help you invest in the financial products that will best meet your goals.

Author's Bio: 

Lisa Cintron is Executive Vice President at, an annuity guide to help you through the process of due diligence when researching annuities as well as immediate and accurate annuity rates and quotes.