Chapter 9

Life Insurance, Annuities, and How They Relate to Your Wealth Code

Life insurance and the various products that come from life insurance companies have always been a great source of debate among financial advisors, as well as the general public. Some call it a necessary evil, others say it is the Holy Grail, while still others say it is a complete waste of time and money.

As with everything, no two people will have the same needs, but many of us could potentially benefit from some form of life insurance or life insurance products, such as annuities, at some point depending on our situation. When used appropriately, insurance is most certainly a part of a successful financial table. A problem we see consistently is the sale of life insurance products by insurance agents who are not licensed in securities, or by insurance representatives who are licensed in securities yet only focus on life insurance products. One-trick ponies one might say. Their answer to all financial questions comes back to either life insurance or annuities, either fixed or variable.

I view insurance products as another tool in the financial toolbox to be used when appropriate and suitable for the client’s needs. Here again, one size does not fit all.

This discussion will serve as a brief opinion on this very complicated basket of financial tools, tools that all too often are sold by representatives and agents who tell only a part of the story. This is a common problem with the sale of annuities.

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