Through the medium of life insurance, millions of individuals have accumulated savings while providing protection for their families. Insurance companies have pooled these savings and injected them back into the financial bloodstream of the economy. This pool of investment funds has helped to achieve increasingly greater productivity and has raised the standard of living in our society. This article seeks to explain how life insurance functions as a vehicle for personal savings. The protection element of life insurance is related to the level premium concept of funding insurance. The savings element of life insurance is then discussed and related to equity-based investments. Finally, an effort is made to anticipate the future of life insurance as a personal savings vehicle.
Vane B. Lucas,
Life Insurance as a Personal Savings Vehicle,
48 Neb. L. Rev. 877
Available at: http://digitalcommons.unl.edu/nlr/vol48/iss4/2