Abstract
Abstract 1. Savings made through life insurance are at this time the most common by far of all types of individual savings. Life insurance accumulations at the present time account for something around one-fourth of the total savings of individuals.2. Savings made through life insurance are a very stable form of savings, varying less with business conditions than other forms of monetary savings.3. At the present time, life insurance savings form by far the most important source of capital which seeks mainly a secure rate of return and safety of principal, rather than tax exemption or chance for capital appreciation. Traditionally they have been invested very largely in evidences of long term debt.4. In the decade prior to the war, life company funds seemed to be outgrowing traditional investment outlets.5. However, at the present time this trend seems to be in reverse, with investment outlets, even in traditional form, becoming rather plentiful. With declining savings, higher prices, and a huge real capital demand both here and abroad, we seem to have entered a period of real capital scarcity.6. The main new outlet developed in recent years for life insurance funds has been direct investment in real estate, both housing and commercial.7. The tendency for life insurance companies to invest largely in debt media may create a problem from the point of view of some industries which should be financed largely through equities.
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