Life Insurance Industry Reacts To Tax Reform Proposal
|Targeted News Service|
The life insurance industry recognizes the efforts of
But life insurance companies, agents and brokers are greatly concerned over the effect the chairman's proposal would have, if implemented, on the 75 million American families and thousands of businesses that rely on the industry for help in responsibly managing risks and planning for their financial futures.
One provision, on company-owned life insurance (COLI), would impose new taxes on life insurance used by businesses small and large. Many businesses use COLI to protect against financial risk or job loss stemming from the death of owners or key employees. COLI also is a widely-used funding mechanism for employee and retiree benefits.
The industry also is concerned about a whole new series of tax increases on life insurance companies that would, if adopted, make industry products such as life insurance and annuities less affordable. In the aftermath of the financial crisis, and with people living longer than ever before, the guarantees offered by the industry are more important than ever. Proposals to make industry products less accessible make no sense.
In addition, the industry is concerned with the chairman's proposal to impose new taxes on retirement savings and change contribution limits and distribution rules that would create significant impediments to Americans' much-needed retirement readiness efforts.
Life insurance companies, agents and brokers look forward to working with the chairman and his entire committee to explain how industry products, services and financial advice benefit 75 million American families and thousands of businesses across the country.
The AALU is the leading organization of successful life insurance professionals who are a trusted voice on the unique public policy issues involving the advanced life markets. Founded in 1957, the AALU counts more than 2,200 professionals as members.
About NAIFA: Founded in 1890 as
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