<prompt> Human: It seems that since this policy is nontaxable, why would people not use this more than a 401k?  <response>: Because the return on investment is much lower than with other types of investment vehicles. Thats how the company that offers it makes money...by lowering your returns.A Roth IRA or 401k is also after-tax and nontaxable.A traditional 401k results in immediate tax savings 