Insurance company suggests unusual solution to national debt crisis

Aug 04, 2011

US's debt could theoretically be payable through life insurance.

The national debt stands at roughly $14 trillion, and Congress has invested years into deriving a proper approach to repayment while making sure we don't go into default. According to one insurance company, however, we're going about it all wrong.

James Herlihy, on behalf of American Benefit Corporation, suggests the most viable way of handling our staggering deficit is with life insurance. By using the reason individuals file for coverage when assets need to move, the federal government can establish an easy line of credit if it can act as a beneficiary itself.

"The United States Treasury should acquire approximately $3 million of life insurance from a consortium of United States life insurance companies on approximately 5 million Americans who are willing to submit to an insurance physical," Herlihy suggests. Mathematically, assets would be able to accommodate for our current debt.

Insured persons over 50 would reach life expectancy in about 30 years, allowing the program to succeed for the next generation of citizens over the course of three decades.

While the idea may never come to fruition, those with no other reason or beneficiary in mind to file for a life insurance policy may be able to profit on a communal level and help their children and grandchildren prosper later as citizens under this idea.

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