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Certain insurance products and practices have been described as hire-searching for by critics. quotation wanted That is, some insurance merchandise or practices are helpful primarily because of legal benefits, reminiscent of decreasing taxes, as opposed to offering safety towards dangers of adversarial events. Beneath United States tax regulation , for instance, most homeowners of variable annuities and variable life insurance coverage can invest their premium payments in the inventory market and defer or remove paying any taxes on their investments till withdrawals are made. Generally this tax deferral is the only motive individuals use these products. citation needed Another instance is the authorized infrastructure which allows life insurance to be held in an irrevocable trust which is used to pay an estate tax whereas the proceeds themselves are immune from the estate tax.
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