Life insurance annuities

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.

  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.