Inside Buildup

These two meetings, plus the announced intention of some members of Congress and the Treasury Department to consider taxing the inside buildup of cash values, adds a note of uncertainty to our discussion today. 

--  PAUL J. OVERBERG

1983 - INDIVIDUAL LIFE INSURANCE, Society of Actuaries

President Reagan's tax proposal [11], released in May, 1985


If life insurance policies lose the tax deferment advantage so all interest earned on the cash value is taxed currently, universal/variable life insurance policies would become unmarketable.

1985 - Universal / Variable Life Insurance: Policy Purchase Decisions, Stephen P. D’Arcy and Keun Chang Lee

JULY 19, 1985
Impact of Tax Reform on Insurance Industry
Witnesses testified on the effects that President Ronald Reagan’s proposed tax reform will have on the Life insurance industry.
https://www.c-span.org/video/?125556-1/impact-tax-reform-insurance-industry

1985 - GOV - Comprehensive Tax ReformHearings Before the Committee on Ways and Means, House of Representatives - Part 7

https://www.c-span.org/video/?125556-1/impact-tax-reform-insurance-industry

Congressman Heftel <Hawaii>

  • .....unfortunately, I think that we are misunderstanding what will happen from taxing the build-up because I think the product will disappear, and so I don't understand where Treasury comes up with revenue figures based on the fact that people will continue to buy the product and that sales people will continue to sell the product.
  • It is my assumption that the product simply won't be sold. Sales people I have talked with indicate that they just simply will sell something else, but they won't be selling whole life.

Mr. BECK <Prudential>: That is right. (p6069)

1985 - GOV - Comprehensive Tax ReformHearings Before the Committee on Ways and Means, House of Representatives - Part 7

https://www.c-span.org/video/?125556-1/impact-tax-reform-insurance-industry