Insurance Sales Threatened? American Banker (08/24/00) Vol. 104, No. 34 p.4A; Jarlenski, Marian
Financial planning analysts are concerned that interest
in life insurance policies and trust funds will wane if the
inheritance tax is repealed. A new report by Merrill Lynch
suggests an estate tax repeal stands to hurt life insurance sales
the most. One reason for this is that life policies are often
used to protect assets from inheritance tax. Analysts reason
that life sales could plunge if the estate tax is overhauled.
Fox-Pitt, Kelton Inc. arrived at the same conclusion with its
study that confirmed sales of estate planning products have risen
by 20 percent to 30 percent, but that the tax repeal will likely
stem the tide.