Life insurance annuities

#1

I have been working with a local CFP. I am provided his services at no cost. He suggested taking some of my savings and buying into a life insurance policy with an annuity. I really don’t even understand it, to be honest. Can someone explain the concept to me in layman’s terms? I don’t recall if it’s term or whole, but I’m assuming someone here knows which it would most likely be. I would assume the CFP gets some type of commission, so I’m a little hesitant since I would assume he has a vested interest.

What happens if the market crashes and your money is in the market and not a vehicle as mentioned above? Is the insurance product also in the market? Apologies for my ignorance.

Thank you.

#2
  1. Don’t invest in anything you don’t understand
  2. If you think they get a comission, they probably do.

@ShaneSideris or @vivitron or @Jeremy probably know in better detail.

Essentially the 4% rule is creating your own annuity with as few fees as possible.

Term life insurance separate from your investments is 99% the best option for most people. One of the few times a blanket statement in personal finance often holds true.