What is a common feature of both annuities and life insurance?

One common feature of both annuities and life insurance is that they are designed to manage risk, specifically the risk of financial loss due to unforeseen circumstances. Annuities provide a way to convert a lump sum of money into a stream of income over time, helping individuals manage the risk of outliving their savings. Life insurance, on the other hand, offers a financial safety net by providing a benefit to beneficiaries upon the policyholder's death, thus managing the financial risk associated with that loss.

Both products serve different purposes in financial planning, but they share the fundamental goal of mitigating various financial risks over a person's lifetime. This risk management aspect is crucial in helping individuals and families secure their financial future against potential uncertainties.