Description: This article discusses the implications of a principle-based reserve PBR system with respect to federal income taxation of life insurance companies, particularly with respect to tax reserves and their deductibility for tax purposes. The article discusses potential problems with existing tax rules for reserve deduction, what courses of action the IRS could take, and suggestions for design features of a PBR approach that would make it more consistent with current tax rules. Life insurance product tax implications are also discussed.

Description: This is a discussion on individual life insurance market needs and product design under conditions of inflation. Specifically it highlights the needs and interests of potential customers during periods of inflation, what problems are created in traditional life insurance product design during inflation, what solutions are available to life insurance companies and what solutions may be available in the future.