The savings element of the life insurance product also is an effective way to accumulate assets of wealth. Current tax laws make it one of the few ways to accumulate savings tax-free. That means the accumulation of funds will continue uninterrupted even if the client does not pay any more money into the plan. There is a good chance of being disabled for a significant time during an individual's working years. Should a long-tern disability strike without adequate protection one could be financially devastated and need to sell accumulated assets in order to meet daily expenses.
Annuities are extremely effective planning tools for accumulating assets and wealth.
They permit people to accumulate money with interest on a tax-deferred basis. That means that the money that would have been taxed now works to earn more money for them. Today, as life expectancy continues to increase, people are becoming more concerned about outliving the money they have saved for retirement. With an annuity, the monthly income can be guaranteed for as long as the person lives. Effective sales people are developed, they are not born.