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Annuities provide a stream of payments and are usually classified as insurance coverage as a result of they are issued by insurance coverage corporations, are regulated as insurance, and require the identical sorts of actuarial and investment administration experience that life insurance requires. Annuities and pensions that pay a profit for all times are sometimes considered insurance coverage in opposition to the chance that a retiree will outlive his or her financial assets. In that sense, they’re the complement of life insurance coverage and, from an underwriting perspective, are the mirror image of life insurance coverage.
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