All of the following statements about annuities are true EXCEPT:

Annuities are financial products designed primarily for income distribution, often used as part of retirement planning. They indeed provide a stream of income, making them useful for retirees looking for consistent cash flow. Annuities also feature tax-deferred growth, allowing your investment to grow without immediate taxation, which can enhance the accumulation phase before withdrawals begin. This aligns with their function in retirement savings strategies.

However, the characteristics of annuities differ significantly from those of life insurance. Life insurance is primarily designed to provide a death benefit to beneficiaries, whereas annuities focus on providing income to the insured during their lifetime or for a specified period. The two products serve different purposes in financial planning and have distinct features and structures. Therefore, stating that annuities have all the same characteristics as life insurance is incorrect, making this the exception among the presented statements.