Although they cannot draw more than the maximum amount - which is approximately equal to a good health annuity - there is more flexibility over the death benefits.

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According to this story, some companies use the Social Security death file as a source to make sure that they are not continuing annuity payments, but for determining that life insurance payments need to be made, not so much.

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Moreover, insurance companies are set to unleash an onslaught of flexible annuity products, such as Lincoln Financial's i4Life plan, which is a variable annuity that hedges against inflation, puts a floor under income payments and provides a death benefit if your die before 85.

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