1) In Canada, annuities are covered by Assuris, so that's not a concern. I imagine that Europe has similar protections.

2) Is balanced by the upside risk that I live to 117 and run out of money. And frankly, I'm much more worried about that than I am about stiffing my heirs (at least once college is paid for).

3) If you had $1M and withdrew roughly 4% for the rest of your life, there's also a decent chance it would be worth a lot less than $1M when all is said and done and you're eating capital. Remember, you're no longer a long term investor, you can't ride out ups and downs, you have to keep paying the bills during down periods, excaberating your losses.

I'm firmly of the belief that annuities are one of the best types of insurance you can buy.