This only matters if you want high turnover active investments or high dividend stocks or fixed income. Anyone can buy an index fund and hold it til they die. They'll pay no income taxes and won't pay the insruance company either.
...this is called under capitalizing reserves. It's what took down AIG (and dozens of other less well known companies). It's basically using reserve float to make speculative trades. That means a slight adverse market move can leave the account under capitalized and unable to meet its claim obligations. If this was a sound investment play, every insurance company would do it. I reality, bonds rule insurance portfolios. Buffet has made his reputation on being risky by standards of insurance float investment. It's taking on an unknown absolute risk in hopes of good return on expected probable risk. Buffet doesn't have the money to do this, neither does anyone else.
It is about investment insurance contracts. A lot of private banks use these nowadays. I believe one of the pros is that they can be put on 2 heads, e.g. father and son or grandfather and grandson. If one person dies, the contract just keeps running (so no taxes due) You start an insurance policy contract much like you would open a bank or brokerage account, and you put different investments in that contract (mostly different funds (hedge, mutual, bond funds etc...))
%% That article sounds like it was written by a whole life insurance agent, but that is not a prediction.State Farm does well with stocks + bonds+ premiums, even though they left FLA on home property insurance. I see Greenburg/AIG finally lost its lawsuit [2017]against the US gov for its take over of 80% of AIG stock,after all the AIG insane leverage+ AIG contracts which paid traders huge bonuses with losing year LOL.I like the way Carl Ichan help bust AIG up........