Non Exempt Policy

A non exempt policy is one where the policy owner has to report the income that is accruing on the policy on a yearly basis. This means that the taxes are paid each year or whatever gains have been made.

Insurance answer
If you do not wish to pay taxes on the income reported each year then you need a different type of policy. Speak to your accountant and/or insurance adviser as to what is the best product to suit your particular needs.