Life insurance and retirement annuity are two different financial security products.
Life insurance
The main purpose of life insurance is to provide financial protection to the family or beneficiaries in the event of the policyholder’s death. Thus, LIC pays money (insurance coverage) to the beneficiary specified in the policy. Such a policy can be temporary (for example, for 10, 20 or 30 years) or permanent (lifetime). The insured pays the premium regularly during the policy period.
Retirement annuity
The main purpose of retirement annuity is to provide a regular income to an elderly person. An annuity owner contributes money over a specified period (the accumulation phase). The annuity payments start upon reaching retirement age. Unlike life insurance, retirement annuity guarantees a regular income for life.
Source: https://money.com/life-insurance-vs-annuity-explained/
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