Life & Health Insurance Laws
Justice Oliver Wendell Holmes, Jr.
In 1911, Justice Oliver Wendell Holmes Jr. delivered the findings of the Supreme Court on the essential issues at the heart of the opinion concerning L&H (Life & Health) insurance contracts as a unique form of collateral with liquid cash values similar to US currency in commerce:
“…insurance has become in our days one of the best recognized forms of investment and self-compelled saving. So far as reasonable safety permits, it is desirable to give to life policies the ordinary characteristics of property…To deny the right to sell except to persons having such an interest is to diminish appreciably the value of the contract...”
Since that time, many rules and regulations now govern insurance in the U.S. and Canada, but the most important is the tax-exempt inside build up of cash accumulation values, and the ability to borrow without incurring an income tax on the amounts withdrawn up to basis on the policy. Please read more HERE if you are interested in all the specifics of CAIC tax law rulings.
“…insurance has become in our days one of the best recognized forms of investment and self-compelled saving. So far as reasonable safety permits, it is desirable to give to life policies the ordinary characteristics of property…To deny the right to sell except to persons having such an interest is to diminish appreciably the value of the contract...”
Since that time, many rules and regulations now govern insurance in the U.S. and Canada, but the most important is the tax-exempt inside build up of cash accumulation values, and the ability to borrow without incurring an income tax on the amounts withdrawn up to basis on the policy. Please read more HERE if you are interested in all the specifics of CAIC tax law rulings.
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