How to Balance Annuity and Life Insurance Investments

Balancing annuity and life insurance investments is an important part of retirement planning. These investments are considered complementary to one other, and you want to make sure that you balance them appropriately. Here are the basics of how to balance annuity and life insurance investments.

Life Insurance

You want to make sure that your life insurance coverage is in order before doing anything else. You would not want to leave your family in bad financial shape if you were to die unexpectedly. In order to determine how much life insurance you need, you need to calculate how much debt you have. You also need to determine how much money your family would need for living expenses for several years into the future. Determine how much the amount is and then buy a policy for this amount.


After paying for your life insurance policy premium, you should devote the rest of the money that is left over after funding a retirement account to an annuity. As you get older, you are going to be able to reduce the money that you pay to a life insurance policy if your debts decrease. When that happens, you can use that money to increase your annuity contributions.

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