Phillip Cannella Blog: Phil Cannella Explains the Statutory Accounting System of the Insurance Industry

Phil Cannella – Phillip Cannella Blog: Phil Cannella is a very skilled and knowledgeable professional in the insurance industry having studied extensively on laws and regulations relating to retirement planning and other aspects of insurance over the last 40 years. Phil Cannella has made it his business to be a true industry professional so that he can continue to help seniors in every way he can to navigate through retirement.

Phil Cannella explains that one of the key aspects of the insurance industry which makes the products they offer so sensible is the “statutory accounting system” that the industry operates on. This is how Phil Cannella himself explains this: “The insurance industry operates under something called a statutory accounting system.  Very few people know about it, including financial advisors and even some elite retirement advisors.  The word “statutory” means legislatively – by law.  This is very important when it comes to a class of non-securities based annuities called fixed annuities.  When you give an insurance institution money, called a premium, for one of these fixed annuities, that company is required to reserve your principal dollar for dollar in a legal reserve to cover anticipated payments.  They can’t call that principal an asset, it’s a liability.”

Phil Cannella utilizes insurance products in his crash proof retirement system for the very reason of their safety.