Best Way to Pay for Life Insurance - Part 3

There are many arguments against losing the tax-favored treatment of the inside buildup available within life insurance policies. Many purchasers of life insurance find the increasing after­tax cost of retail yearly renewable and convertible term insurance intolerable. Statistics from the Life Insurance Marketing Research Association (LIMRA) indicate that death benefits are paid out for only 1 percent of retail term insurance policies. The other 99 per­cent are dropped without value.

How many families have been saved from economic ruin and from dependence on the welfare system as a result of life insurance contracts that contained the tax-favored inside buildup that stayed in force until death? How many companies and jobs have been saved by death benefits provided by this same source? Life insurance exists in its present form because it works. People buy it and keep it! It assists all of us by relieving us as taxpayers from the burden of picking up the economic cost of the deaths of others. It enhances economic independence. It rewards the thrifty and encourages self-reliance. The new theme of all legislation should be reduced reliance on government (and thus reduced taxes) and more reliance on the individual, thus encouraging individual enterprise.

Life insurance is an economic tool that not only provides security to families in the event of a death but also serves as an efficient accumulation vehicle. It is available to almost all of us to enable us to save reasonable amounts of money so that we can pay for our own children's college educations, our own family emergencies, and our own retirement. At this time, government and employers cannot and will not provide for these things. Continued need for the tax-favored nature of life insurance has never been greater.