Annuities, Do We Need It?

I find this article an interesting read, I've extracted a part here but do go to this link for the full story:

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At a recent retirement workshop that I conducted, an interesting discussion arose. In discussing the role of life insurance in a person's financial life, I told the participants that life insurance is for the purpose of protecting against income loss for the family, during a person's income-producing years, should death occur. It should be an expense if nothing happens to you. As such, buying term insurance products that give nothing in return when they expire is the way to go. It is a highly affordable way for you to cover all your needs.
Then the objection came: "Won't I lose out if nothing happens to me and I get nothing back?"

I (then) explained that an annuity is an insurance policy that will pay you an income for as long as you live.
Another objection came: "Won't I lose out if I die too early?"

I was dumbfounded for a while. In the first case, why should you feel upset if you are healthy, live a long life and do not claim any proceeds from life insurance? And if you die too soon, and benefit from life insurance but "lose out" in your annuity, you are unhappy as well. We need to understand that we can't have the best of both worlds in many things in life.
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* CNA-Annuities *

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Typical kiasu, kiasi & ai-pi-ai-qi (wan cheap, wan good) Singaporeans, but these traits aren't bad at times.