Proposed Tax Code Change On Life Insurers Would Hurt Already Suffering Americans

Monday, May 11, 2009

NAVA HQ – A proposed tax code change by the Obama Administration affecting the life insurance industry and its policyholders would ultimately hurt already suffering Americans said NAVA, the Association for Insured Retirement Solutions.

The administration is looking for new revenue raisers to fund its healthcare initiatives, and life insurance companies are in their crosshairs, according to today’s Wall Street Journal: “The budget also seeks to raise additional revenues through the life insurance industry. A ‘dividends received’ deduction currently applied to life insurance company accounts would be changed, according to the White House, as would some life insurance contract rules. The total revenue from the provision reach $12.7 billion over 10 years.”

NAVA CEO and President Cathy Weatherford responded: “The life insurance industry is strong but is not immune from the current economic climate. Burdening not only the life insurance companies but the brokers that sell the insured solutions will ultimately hurt Americans who are already suffering. Americans rely on life insurance for tax-free retirement security and this would undermine that long-held tenet. And this may not be the last action taken that could negatively affect those planning for retirement.”

About NAVA: NAVA, the Association for Insured Retirement Solutions®, is a non-profit trade association dedicated to promoting consumer confidence in the value and viability of insured retirement solutions, including annuity and variable life insurance products. NAVA pursues advocacy on federal policy matters that affect the annuities business directly, provides informational resources to members and the public, and protects customers by encouraging adherence to the highest ethical standards by all participants in the financial services industry.  NAVA membership is comprised of insurance companies, asset managers, service providers and distribution firms, including broker dealers and banks. For more information on NAVA, visit www.NAVAnet.org.

Contact: Chris Paulitz
(703) 707-8830 ext. 17