How should I invest my 401K?

This practice leaves the insured open to utilize whatever investment options they see fit. However to take full advantage of the tax benefits of permanent programs they should first be understood. Life insurance death benefits are never taxable, and cash value growth on permanent plans are tax-deferred as long as the policy is in force. If the policy is canceled (because the need for insurance is obviated) any accumulation in excess of Adjusted Cost Base (ACB) will be taxable. It is often thought that the only way to avoid these taxes is for the insured to die while the policy is in force (essentially making these monies unavailable to them). Depending on how the insured structures themselves premiums may be paid with pretax dollars (as a business obligation in a corporation for example), but are most often paid with after tax money. Variable plans provide the insured the opportunity to choose the investments, though the investment vehicle is still within the life insurance plan.