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Sure insurance coverage products and practices have been described as hire-seeking by critics. quotation wanted That is, some insurance coverage products or practices are helpful primarily because of authorized benefits, akin to decreasing taxes, versus offering protection in opposition to risks of adversarial occasions. Below United States tax legislation , for instance, most house owners of variable annuities and variable life insurance can make investments their premium payments within the stock market and defer or remove paying any taxes on their investments until withdrawals are made. Sometimes this tax deferral is the only motive individuals use these products. citation wanted One other example is the legal infrastructure which allows life insurance to be held in an irrevocable belief which is used to pay an estate tax while the proceeds themselves are immune from the property tax.
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