Explain the difference in cash benefits for life insurance and for annuities
What will be an ideal response?
Answer: Life insurance pays a cash benefit upon the death of the policyholder. Annuities make regular cash payments while the person is still alive.
Explanation: An annuity is a contract in which the company agrees to make regular payments to a person, either for a fixed period or until the person dies. Life insurance only pays a cash benefit when the policyholder dies.
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