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 0710 and 1017 – GOV (Senate) – FTC Study of Life Insurance Cost Disclosure, Howard Cannon (D-NV) — [BonkNote]

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, DOTT – Department of the Treasury

1983 0510, 0511 and 0728 – GOV (House) – Tax Treatment of Life Insurance, Pete Stark (D-CA) — [BonkNote]