You may have heard of annuities for retirement income, but they can be leveraged to fulfill other financial planning goals as well, making your money work for you. Read on to hear about 3 other ways you can use an annuity. It just might surprise you how flexible annuities can be . . .

USE #1 - It can be used as an alternative to life insurance

This isn't an option that makes sense for every situation, but depending on your needs, goals, and whether or not you have any current life insurance and it's long-term affordability within your budget, it could be a good option for you.

If your primary concern during retirement is maintaining a comfortable but sustainable lifestyle, you can look into an annuity with a survivor rider if you have a spouse. This would provide monthly income today, and ensure that the monthly payments would continue throughout both of your lives. If you have concerns about you or your spouse outliving your money, an annuity is a great option to explore to see if it makes sense for your situation.

USE #2 - Consider a deferred annuity to manage longevity risk

Did you know that for couples aged 65 or older, there's a 25% chance that one of you will reach age 98? On average, men have a 25% chance of living to age 93, and women to age 96. Thanks to advances in science and medicine, we are now living longer than ever before. This also means that our money now has to last us longer.

Even if you've done everything right, it's not always clear if your savings will last as long as you need it to. A deferred annuity can help by initiating payments at a certain point down the road, providing monthly income for the remainder of the annuity owner's life. Whether you pass away at age 80, or age 100.

USE #3 - Use it to simplify inheritance

For blended families, or those with complicated estate planning needs, annuities can be used to help guarantee an inheritance, or carve out assets to a specific beneficiary. This solution isn't always the simplest, but for certain scenarios, they can provide clarity and reduce family conflict.

Annuities can be great solutions for certain situations, but they definitely don't make sense for everyone. You need to meet with an insurance agent so that they can review your current situation as well as your future needs and goals, and determine which solution best fits your needs.

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