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Simply put annuities are an agreement with someone like an insurance company whereby you give them a lump sum and they agree to pay you an income for life in return for the lump sum.

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Equity release is not as complicated as many people think. Simply put, it is the releasing of money (equity) that is currently locked up in an asset. An example, probably the most commonly used example,

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Your home is likely to be the biggest purchase you make. It will also likely be your most valuable asset and the most important possession you own. That is why it is so important that it should be well covered by a good house insurance policy.

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