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its only tax sheltered up to the MTAR line, meaning you're capped on how much return you can make through your investments tax free. this line is set by the government.
only your beneficiary will be able to receive the money tax free (aka on your death), you however may withdraw the money anytime, at which you will be taxed on the gain. most people do it during retirement were they are taxed at a lower rate due to lower income. this is tax deferral, not avoidance.
the downside is that this type of insurance have higher administrative costs.
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