The life insurance and annuity product structures provide a unique form of tax deferred growth that impact their efficiency in non-qualified portfolios. This presentation discusses the characteristics of these products and evaluates the relative benefits of holding assets within these products. Using simulation analyses, I demonstrate how to evaluate whether tax deferral benefit exceeds product expenses, and strategies for locating specific types of assets within insurance products.
Understand the tax deferral benefit of life insurance and annuities
Evaluate strategies for locating asset classes within insurance products
Professor, Frank M. Engle Chair of Economic Security Research,
The American College of Financial Services