Contracts with depressed rates on line may survive modest features that limit the amount of risk transferred. As rates on line increase, such risk limiting lineaments become increasingly important.
In U.S., the dues on hobby income on life insurance policies and annuities is generally deferred
. However, in some realities the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, Health Insurance other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation. A combination of low-cost term life backing and a higher-return tax-efficient retirement account may achieve fitter investment return.
