Explain how insurance can be used as a tax avoidance


Insurance policies often are a combination of a savings program and life insurance. The individual pays the company, say, $1000 a year; $100 of that goes to cover the risk of his dying during the year, and the remainder goes into a savings program. The return on the amount in the savings program accumulates free of tax-just like an IRA. Explain how insurance can be used as a tax avoidance device.

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Explain how insurance can be used as a tax avoidance
Reference No:- TGS02226871

Expected delivery within 24 Hours