I have some insurance related questions?

[Hansika]

I will be taking my insurance license test this Friday, and as such have come across a lot of information during my studies. I do have a few questions though.

1. With all the limitations and taxes on annuities and retirement plans, wouldn't it be better to just open up a savings account with a bank to store as much money as you please, and then use it as your retirement funds? Or is there a law, such as the Seven-pay test that turns a policy into an MEC, that relates to this?

2. Since the death benefit of a life insurance policy may be included in the insureds taxable estate when the insured is the policy owner (as defined by 'having the right to assign the policy, change or name the beneficiary and to make loans against cash value'), wouldn't the insured be able to dodge taxes by having his or her spouse documented as policy owner? Or will the policy owner (in that case the spouse) have the policy in his/her taxable estate when the policy matures?