About Life Insurance and Savings
Many life insurance policies accumulate cash values, which can be taken by the insured when the policy is surrendered or which may be borrowed against. Some policies (annuities and endowment policies), are financial instruments to accumulate or liquidate wealth for when it is needed.
In certain countries, such as the US and the UK, tax law provides that the interest on this cash value is not taxable under set circumstances. This can lead to the widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.
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