Annuity vs IUL
Quick answer
An annuity is built to turn savings into guaranteed retirement income and can accept tax-free rollovers. An IUL is life insurance that builds cash value with a death benefit and tax-free loans. Annuities suit people near retirement; IUL suits people with years to fund and a need for life insurance.
Key difference
Annuities focus on income; IUL focuses on protection plus accumulation.
Can you have both?
Yes. Many retirement plans use an annuity for income floor and IUL for tax-free supplemental income and legacy.
Frequently asked questions
Which is better at age 60?
Usually an annuity for guaranteed income, though healthy 60-year-olds can still use IUL for legacy goals.
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