Life Insurance as Savings
Life Insurance as Savings
- “If it’s a savings account, why do you pay interest on it when you borrow?” asked Blake Newton, president of the American Council of Life Insurance.
- “Why is it extinguished when you die?”
1979 0930 – NYT – The Appeal of Life Insurance Fades, But Most Families Still Buy It, By Edwin McDowell — [BonkNote] — [link]
- p5 – 2. INDUSTRYWIDE RATE OF RETURN
- Once we recognize that cash value life insurance is both death protection plus savings, the logical next question is: What interest
rate are consumers receiving on their money?
- Once we recognize that cash value life insurance is both death protection plus savings, the logical next question is: What interest
- p6 – 4. INSURANCE VERSUS OTHER INVESTMENTS
- I should emphasize here that neither the Commission nor our staff is opposed to saving through life insurance.
- Some available whole life policies offer return rates which are competitive with other savings media. And there are reasons for saving through insurance: it is convenient, some people prefer the forced savings aspect, and tax advantages may exist. In addition, whole life policies have certain attractive features which may not be available through term insurance.
- I should emphasize here that neither the Commission nor our staff is opposed to saving through life insurance.
- The amount of an individual’s permanent savings in the form of life insurance may depend upon factors such as age, income, marital status, size of family, and other assets.
— James M. Woolery
1962 – SOA – Discussion of Subjects of Special Interest: Marketing, tsa62v14pt2d29 – Society of Actuaries – 8p
- (p36) – See, for example, the statement of John Filer, then president of the Aetna Life Insurance Company, that a whole life policy is not partially insurance and partially savings. It is wholly insurance.”
- Hearings on FTC Life Insurance Cost Disclosure Report (1979).
- (p36) – Also see the American Council on Life Insurance response to the FTC staff’s use of the term ‘savings through life insurance’ in Ibid 133- 134, and the distinction made therein between savings in a macroeconomic sense and the benefits contained in a whole life policy.
1985 11 – FTC – Report – Life Insurance Products And Consumer Information, by Michael P. Lynch and Robert J. Mackay, Staff Report Bureau of Economics, Federal Trade Commission — [BonkNote] — [PDF-317p]
- 1960 0418 – Ad – Institute of Life Insurance – St. Petersberg Independent, The Evening Independent Newspaper- [link-Google-News]
- Life insurance, in addition to providing for family security, plays an important role in our national growth.
- ⇒ Savings, through life insurance, help provide the funds for new schools, new factories and the new jobs a growing America needs.
- The money saved and used in this way also helps in the continuing fight against inflation.