to the heirs, it is tax deferral not avoidance. Of course I guess you could call getting annual check ups avoiding death. I wonder though if you are only postponing it.

I know some Insurance (annuity salespeople) have told people their annuity is tax free. It isn't, it is tax deferred. You don't even get step up basis for the heirs.

Another Insurance term maybe someone could clear up. It is said you can get money out of your whole life policy tax free.
When you consider you pay interest on the money you take out, I guess it is still tax free, but aren't you basically accessing your own money.