Whole Life Annuity

A whole life annuity is a contract between an insurance company and an individual. In exchange for regular payments, the insurance company agrees to pay the annuitant a fixed amount of money for the rest of their life.

There are two main types of whole life annuities:

* **Fixed annuities** pay a fixed amount of money each month, regardless of how long the annuitant lives.
* **Variable annuities** pay a variable amount of money each month, based on the performance of an underlying investment portfolio.

Whole life annuities can be a good option for retirees who want a guaranteed source of income for the rest of their lives. However, it is important to understand the fees and expenses associated with whole life annuities before you purchase one.

Here are some of the pros and cons of whole life annuities:

**Pros:**

* Guaranteed income for life
* Tax-deferred growth
* Potential for tax-free withdrawals
* Protection from inflation

**Cons:**

* High fees and expenses
* Potential for loss of principal
* Complex contracts
* Limited investment options

Before you decide whether a whole life annuity is right for you, it is important to speak with a financial advisor.