Is life insurance an effective tax shelter and investment?  See what some of the 'experts' have said on the subject....

"The returns from virtually tax-free accumulation after the deduction of insurance costs, compared to taxable accumulations, can be quite remarkable … Those with capital to invest would be well advised not to overlook this important shelter and [eventual source of capital]."
Coopers & Lybrand, The Planning Checklist

"Any investment income earned in an exempt policy is exempt from tax. Furthermore, any amounts paid out under an exempt policy on death of the insured are also exempt from tax. In a sense, the investment element of an exempt policy is a perfect tax shelter, in that the investment income can be earned and paid out without ever having been subject to tax."
Price Waterhouse, The Price Waterhouse Personal Tax Strategy

"Life insurance is still an excellent investment tool ... one of the few investments that allows for a tax-sheltered accumulation of funds and at the same time covers the risk of death. The pre-tax compounding effect and the tax-free access to this accumulating fund are two of the attractions of life insurance. The tax-free maturity on death is the ultimate plus."
CA Magazine, Published by The Canadian Institute of Chartered Accountants