Sufficient insurance is important when planning your financial future. Life insurance provides protection against dying too soon or from your loved ones not having enough financial resources when you pass on. Annuities provide guaranteed lifetime income, so you don’t outlive your financial resources.

There are risks which increase the chance of running out of money during retirement. With the advances in medicine, people are living longer than they used to. According to the CDC the average life expectancy at the beginning of the 20th century was 47.3 years. Today it is 77.5 years. Also, the cost of living is increasing, social security may not be available when you need it, and an economic downturn.

Ensure your financial plan accounts for the lifestyle you wish to enjoy in your senior years and even before. Strive to create a source of passive income, not necessarily an annuity, that would fund you even while you sleep.