(Bloomberg) -- A cap that President Obama has proposed on the size of tax-advantaged retirement accounts is seen as potentially pushing savers to another product that limits payments to the government: life insurance.

Obama’s 2014 budget plan, unveiled April 10, includes a proposal to cap at about $3.4 million tax-preferred retirement accounts such as IRAs and 401(k)s. That would encourage wealthy savers to put more cash into insurance -- whose death payouts are typically exempt from federal taxes -- and annuities, where taxes are deferred, said Walter White, chief executive officer of Allianz SE’s North America life business.

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