Capital Formation

  • Second, an adequate flow of long-term capital is a critical need of a free society.
  • Indeed, many of the problems this country is experiencing at the present time are reportedly due to the fact that we don't have an adequate flow of long-term capital.
  • Whole life for over 100 years has been a major factor making it possible for the insurance industry to provide that long-term capital to this country.
  • That a Government agency at this critical point in time should espouse and recommend to the American people that this time-proven vehicle for the creation of long-term capital which served those same people so well should be abandoned in favor of term insurance is hard to believe.  (p79)

-- Thomas J. Wolff - <NALU/ NAIFA> National Association of Life Underwriters

1979 - FTC STUDY OF LIFE INSURANCE COST DISCLOSURE - Cannon - 592p

  • While cash value policies are in force, the amounts saved by the policyholders are combined by the insurance company to form a large block of capital which the insurance company may invest on a long-term basis.
  • This concentration of investment capital historically has allowed insurance companies to play a significant role in the capital formation of this country.

--  JOHN E. CHAPOTON, ASSISTANT SECRETARY FOR TAX POLICY, DEPARTMENT OF THE TREASURY

1983 0510/11 and 0728 - GOV - Tax treatment of life insurance

  • [PDF-974p, No Video] ->Not on govinfo.org
  • Subcommittee on Select Revenue Measures of the Committee on Ways and Means
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