What Is A Life Insurance Annuity?

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Hi there. Stan The Annuity Man, America's annuity agent, licensed in all 50 states, founder of CGO:

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Contractual Guarantees Only. You own an annuity for what it will do, not what it might do.

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Today's question, a weird one. My consultants put it in front of me.

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They don't know the business. They don't know how to spell annuity. They spell it with one N.

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They're not that smart. But that's okay. I retain them because I like

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them. But they put this question in front of me: What is a life insurance annuity?

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I mean, top agent in the country, written seven books on annuities,

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done multiple thousands of videos, licensed in all 50 states, and this question right here, I'm like,

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"What? What are you talking about, son?" You know what I'm going to do, though?

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I'm going to translate it into my brain and then spit out the facts like I always do,

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and I think it'll all work itself out after this.

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So, let's talk about life insurance annuity. I'm trying to get to the genesis,

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biblical Genesis, beginning of the question. Life insurance companies issue annuities.

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So, what is a life insurance annuity? It's an annuity issued by a life insurance company.

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Now, also, that could be someone asking, "Hey, Stan, a death benefit on life insurance

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is tax-free, lump sum, probate-free." I always say, you know, life insurance is the best

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return on investment you'll never, ever get to see or enjoy because you're dead.

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So, life insurance company death benefits are tax-free,

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and life insurance companies issue annuities, but those death benefits are not tax-free. That might

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be it. What is a life insurance annuity? I really believe that it could be... Annuities primarily

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solve for four things: principal protection, income for life, legacy, and long-term care.

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That acronym is PILL. And the life insurance company issuing the annuity, you're transferring

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the risk to the life insurance company issuing that annuity to solve contractually for it.

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Maybe that's what you're talking about. "Hey, Stan, what's a life insurance

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annuity?" Well, I'll tell you what it's not.

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If you buy life insurance and some jackwagon says, "Well, this life insurance right here,

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this indexed universal life insurance right here, you can get tax-free income." No.

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I don't know what accent that was. That was like Foghorn Leghorn thrown in with James Carville. You

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know what I'm saying? Maybe that's what you think. What's a life insurance annuity is a life insurance

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policy that has lifetime income inside of the life insurance policy that's tax-free because the

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boy down the road told him so? No. That's wrong. He's a jackwagon, idiot, sociopath. That's a loan.

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Okay. What is a life insurance annuity, Stan? Well, it could be for principal protection. You

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might say, "You know what? I just want to protect the principal, Stan The Annuity Man, America's

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annuity agent with those funky shirts you wear all the time." Think that's cool? You should see

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my underwear. No, I'm kidding. I haven't gone that far yet. If I do, just yank me. It's over.

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But you want principal protection. That's a MYGA, Multi-Year Guarantee Annuity,

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the annuity industry version of a CD. Principal protection. Peel off the interest if you want

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to. Otherwise, in a checking account-type money, it grows and compounds tax-deferred.

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If you said, Stan The Annuity Man, "Hey, Stan. Stan The Annuity Man,

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What type of annuity do you and the Queen own?" Well, that's a MYGA. Why, Stan? Why?

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Why, Stan? Why? Why, Stan? Why? Why, Stan? Because we don't want to pay taxes. Hello. We want it to

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be contractually guaranteed. Hello. We want it to grow and compound tax-deferred. Hello.

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And we're not trying to hit home runs, but just bunt singles.

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I live by Warren Buffett's rule. What's that saying? Rule number one: Don't lose money.

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Rule number two: Don't forget rule number one.

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The best growth stock on the planet is not Nvidia. It's not SpaceX. It's not

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Tesla, whatever. It's The Annuity Man, which is a privately held company by me. Hockey-stick growth.

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I don't need growth. I am growth. We're the biggest company on the planet, direct to consumer,

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period. And we're getting bigger by the day. Why? Because people are looking for

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contractual guarantees. They're looking for, I guess, a life insurance annuity.

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I blame the industry. I blame the industry for this question because

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annuities should be easy to understand by the consumer because I make them easy to understand.

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Somehow we're about growth, growth, growth, RILAs, variables, indexed. Give me a break.

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Never buy an annuity for growth. Never buy an annuity for a stock market replacement.

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I don't give a crap what your agent says or your advisor says. I am the agent.

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I'm America's annuity agent. You own an annuity for what it will do, not what it might do. Period.

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So, Stan, have you really answered what a life insurance annuity is? I think so.

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I think so. And I think about sooner than later, two to three years from now, after I get done

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demolishing everyone in the space

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by just selling contractual guarantees, I'm the only one doing it. People can't help themselves.

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They have to sell the potential, the hypothetical. Because if you sell enough of that, you go on the

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trip. You go on the trip if you sell that, if you sell the hopes and dreams and the bonuses.

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Life insurance companies issue annuities. There's 8 to 10 types, however you want to split it.

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They offer four things: principal protection, income for life, legacy, and long-term care.

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You ask two questions: What do you want the money

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to contractually do? When do you want those contractual guarantees to start?

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What I hope is you engage with us. Email me, [email protected].

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That's easy. Schedule a call if you want to speak with me. You can do that.

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If you don't want to do either one of those, go to my site, run quotes 24/7/365. Download the books.

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Get educated. One last thing, talking about education.

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I just did a video on inflation and how annuities factually and contractually and pragmatically

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and honestly and truthfully solve for inflation. Not some Johnny Appleseed pie-in-the-sky piece

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of crap, how you do it. Been doing it for three decades. This is how you do it. Period.

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My name is Stan The Annuity Man. See you next time.