Reader says... Hi need some feedback on annuity plans/rates. Pay 16k per year for 5 years. Payout monthly $800 per mth for 10 yrs. annuity rate is 12% correct? AK says... It is not really comparable because this annuity pays only 10 years. It is more like an endowment than annuity. So, I think it might be wrong to valuate this like an annuity. It is more like a savings plan without any insurance component. An annuity is an insurance against longevity risk. Reader says... If like cpflife forever then it is more like wholelife policy? AK says... Life insurance is different. That is more for your dependents. We don't need life insurance unless we have dependents. We buy annuity in case we are blessed with long life and it helps to fund our golden years. Reader says... U know of any annuity plans that u feel is worth considering? ......