1. Why do a pension account and the savings portion of a life insurance product provide the same after-tax rates of return if tax rates are constant over time? In comparing these two savings vehicles,...

1. Why do a pension account and the savings portion of a life insurance product provide the same after-tax rates of return if tax rates are constant over time? In comparing these two savings vehicles, is it appropriate to have the same number of dollars invested in both alternatives?

2. If tax rates are constant over time, why might a taxpayer prefer to save through a money market account rather than a pension account or a tax-exempt insurance policy?

3. Why do rising tax rates make single-premium deferred annuities and pension accounts less attractive relative to ordinary money market accounts than when tax rates are falling?