Since the end of World War 2, whole life insurance was the most popular insurance product out there. Families using whole life insurance policies found financial stability and sufficient retirement funding when losing their loved ones. People even used whole life insurance as an investment method at that time since it would secure annual dividends.
Nonetheless, in 1982, the Tax Equity and Fiscal Responsibility Act (TEFRA) passed in the US was the biggest tax increase in U.S. history. This made people turn their attention to the stock market which accounted for inflation on an annual basis. For instance, the S&P 500 was adjusted for inflation with an amount of 14.76% in 1982 and 17.27% in 1983. Unlike the insurance companies which provided rather fluctuating interest rates that did not account for inflation.
Today, 59% of people living in the US pay for life insurance. It is seen as a contemporary investment tool that is protected from the potential collapse of the stock market. We will be discussing this a bit more later in this video and will run the numbers to measure the effectiveness of using whole life insurance as an investment tool.
https://www.prudential.com/
https://www.statefarm.com/
https://www.newyorklife.com/
https://www.northwesternmutual.com/
https://www.transamerica.com/individual/
https://www.mutualofomaha.com/
https://www.usaa.com/?akredirect=true
Nonetheless, in 1982, the Tax Equity and Fiscal Responsibility Act (TEFRA) passed in the US was the biggest tax increase in U.S. history. This made people turn their attention to the stock market which accounted for inflation on an annual basis. For instance, the S&P 500 was adjusted for inflation with an amount of 14.76% in 1982 and 17.27% in 1983. Unlike the insurance companies which provided rather fluctuating interest rates that did not account for inflation.
Today, 59% of people living in the US pay for life insurance. It is seen as a contemporary investment tool that is protected from the potential collapse of the stock market. We will be discussing this a bit more later in this video and will run the numbers to measure the effectiveness of using whole life insurance as an investment tool.
https://www.prudential.com/
https://www.statefarm.com/
https://www.newyorklife.com/
https://www.northwesternmutual.com/
https://www.transamerica.com/individual/
https://www.mutualofomaha.com/
https://www.usaa.com/?akredirect=true
Category
📚
Learning