When it is time to retire, you may wish to purchase an annuity that will provide regular income to
meet your expenses. A basic form of an annuity is called a life annuity, which pays a regular
amount for as long as you live. Annuities are the complement of life insurance. Since payments
are made until death, the peril is survival and the risk you have shifted to the insurer is the risk of
living longer than your savings would last. There are also annuities that combine the basic life
annuity with a benefit payable upon death. There are many different forms of death benefits that
can be combined with annuities.
Disability income insurance replaces all or a portion of your income should you become disabled.
Health insurance pays benefits to help offset the costs of medical care, hospitalization, dental care,
and so on. Employers may provide many of the insurance coverages listed above to their employees.
