Does anyone have an opinion on using life insurance annuities as a vehicle for saving - for vacations, emergencies, college tuition, just about anything?

If you need insurance, buy insurance. Don't confuse insurance with investing. Savings should be put into stocks, bonds, bank accounts, mutual funds, etc.

I have a friend who is a financial planner, who is really pushing this type of investment, and its not something I'm comfortable with.

Go with your gut. If you're not comfortable there is probably a reason. It is being pushed because there is a potential good commission involved for the salesman which you are calling a financial planner.

He claims there is no risk, you can always make 4% per year with the ups and downs of the stock market. Is that really true?

No one can guarantee a fixed percentage and if it is being claimed your upside in really good years is being compromised.

Bob