Those aren’t “safe”, either. Insurance companies can & do go bankrupt. State guarantees are low; $250,000. Guarantee associations are simply backed by other insurance companies and not the federal government.

There is only two insurance companies in the entire US that offers cost-of-living adjustments. Which means you have to choose to face either inflation risk (by going without) or concentration risk and use the limited choices available.

The illiquidity of annuities — the inability get cash back out of them — also introduces risks, especially around health shocks.

Some people may find this set of risks more appealing for their personal situation — and there’s certainly something to be said for the insurance/annuity approach and pooling risks instead of trying to self-insure.