Which of the following is NOT a feature of an annuity?

An annuity primarily serves as a financial product designed to provide a steady stream of income, often during retirement. One of the fundamental features of an annuity includes its capability to provide income for a specified duration, whether it be for a specific number of years or for the duration of the annuitant’s life. Additionally, an annuity offers tax-deferred growth on the earnings until withdrawals are made, allowing the investment to grow without immediate tax burden.

The protection against outliving one’s money is another essential purpose of an annuity, particularly in the context of lifetime income options that ensure individuals receive payments for as long as they live, thus mitigating the risk of depletion of financial resources in old age.

In contrast, while an annuity can offer some death benefits, it is fundamentally distinct from life insurance, which is structured to provide a financial benefit upon the death of the policyholder and typically has a primary focus on providing financial support to beneficiaries after the policyholder's death. This vital distinction clarifies why being a form of life insurance is not a feature of an annuity.