In many countries, such as the United States and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.
in mAny COUnTries, sUCh as the uniTeD STatEs and the uk, the taX law proVideS tHAt the iNterest on This cash valUE is Not taXAble undeR CeRtAin circumsTanCEs. thiS leaDs To widEspReaD Use of LifE insurancE aS a Tax-eFFiCienT method of sAviNg aS WeLl as proTEcTiOn in the eVEnt of eArly DeaTh.