Commonly marketed as a Life Insurance Retirement Plan, it's important to know that using life insurance as an investment strategy can have severe drawbacks. In these plans, a substantial amount of your client's premiums are usually applied toward policy fees, the cost of insurance, and commissions. Essentially, it can take time for the savings account to start gaining value, especially for people in their fifties or sixties.

Likewise, annuities, specifically indexed annuities, need to be structured correctly with proper products and insurance companies for them to have performance and keep pace with fixed annuities. Even though some might have expensive fees, comparatively they are less expensive overall when compared to life insurance.

While both should be considered in your client's long-term financial plan, it's imperative to understand the differences and how each might play a role.

Learning Objectives:

• Identify differences between life insurance and annuity policies


• Define the fees and expenses to consider


• List taxable withdrawals subject to either FIFO or LIFO


• Determine how to use qualified retirement accounts with both


• Contrast an indexed annuity versus an indexed universal life product


• Evaluate manipulated illustrations and a better buying experience

NASBA Approved

CPAacademy.org (Sponsor Id#: 111889) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222