Not sure about folks' actual reasoning, but I don't think that can be consistently squared with the popularity of life insurance. "The most common terms are 10, 15, 20, and 30 years."
Yeah, but most people don't "expect" to collect term life. And even if it does pay, you'll be dead!
You do expect to collect your annuity payments.
Also, if your life insurance company goes under, then you can just buy a new policy from a different company. You only get screwed if you die after the insurance company goes under but before you can buy a new policy. With an annuity, if your insurance company goes under then you are capital-S Screwed.
So you're saying people don't care if their life insurance pays out? I guess they're just buying it to look caring to their family, then?