Why is tax-sheltering such a big issue?
Among the several advantages of a good universal life insurance policy, deferring taxes on investment returns is the most basic one. The importance of such a tax-shelter can be seen from the following simple scenarios. What you can see is that, since tax is charged on nominal gains, inflation has the potential to totally destroy even decent investment gains. Today, inflation may not seem to be a major concern; however, it is good to remember that the average inflation rate in the last 30 years was around 5%. The lesson from these scenarios is that it is very important to accumulate money inside a tax shelter.
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