Tax Deferral

From Ask in Wiki

Tax Deferral Postponing the payment of income taxes until some point in the future, often at retirement. Generally, the cash value growth inside life insurance is eligible for deferral, unless the amount of cash received through surrender exceeds the policy's tax basis. Any additional surrenders beyond the basis must be reported as taxable income. Taxes may be deferred on modified endowment and annuity contracts until the owner takes possession of the cash benefits.