Annuity and life insurance products (within certain limitations) can be used not only as personal investments but also for pension plan purposes.
Thus, Individual Retirement Account plans, as well as defined contribution, profit sharing and KEOGH Plans could invest part or all of the plan assets in annuities for the participant.
If each participant were the beneficiary of his or her own annuity contract, he or she should be offered same protection from creditors attaching the portion of his or her pension account which is so invested.
Disability income benefits, unless specifically created for the benefit of creditors, are exempt from execution (Florida Statutes Chapter 222.18) when he or she becomes disabled, one facet of proper estate and financial planning is to have the necessary resources to protect the individual and his or her family in the event of disability.
Disability insurance can provide for an individual’s income needs despite any creditor claims existing at the time of or subsequent to the disability period.
However, disability payments already received by an individual are not exempt.
As described previously, converting already received funds into protected assets may afford additional protection.