Life insurance is a means of managing risk that provides financial protection to the beneficiaries of the insured and, as a result, saves the U.S. government from incurring costs, write Adam Sherman and Timothy Hall of Firstrust Financial Resources. That's the reason behind the product's long-held tax status and why it will remain a responsible purchase despite any changes to that status, they write. Advisers should make sure Congress knows of life insurance's importance, and clients should know that tax changes to life insurance typically have affected new policies, although taxing some features of existing policies, such as the inside cash buildup, have been proposed, Sherman and Hall write.

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