Public Policy

Americans should not be penalized for taking steps to secure their financial future. Policy-makers must carefully consider the negative effect on families if changes to public policy make it harder and more expensive to obtain financial and retirement security through the products they have come to depend on. 

Savings in permanent life insurance and individual annuities represent more than 20 percent of long-term savings in this country—that’s 1 in every 5 dollars saved. These savings are key to the protection and guarantees these products provide. Given that savings in this country are woefully inadequate, we shouldn’t undermine the long-term savings in these products.

Learn more about our views in the resources below.

Life Insurance Industry Reacts to Administration’s Deficit Reduction Tax Provisions

The leading trade associations representing the life insurance industry issued a joint statement urging the administration to eliminate provisions in its deficit reduction proposal that amount to new taxes on products providing financial security and peace of mind. The plan attempts to revive two proposals that have been proffered annually by the administration since 2009 and have never been taken seriously by Congress. In fact, earlier this year, 31 of 36 members of the House Ways and Means Committee rejected consideration of this same proposal.

Letter to Senate Finance, House Ways & Means: Deficit Reduction

AALU, ACLI, GAMA International, NAIFA and NAILBA sent a letter on September 8 to the chairman and ranking members of the House Ways and Means Committee and Senate Finance Committee to urge policy-makers to carefully consider the negative effect on society if changes to public policy make it harder and more expensive to obtain financial and retirement security. The letter was sent as these influential committees prepare to develop recommendations to the Joint Select Committee on Deficit Reduction.

Response to Current Debate on Taxes and the Deficit

AALU, ACLI, GAMA International, NAIFA and NAILBA sent this letter to all Members of the 111th Congress on November 15, 2010, to express their views regarding the current debate on taxes and the national deficit, in anticipation for the various reports due out on the subject.

Life Insurance: Providing Financial Protection

This issue brief, produced by ACLI, AALU, GAMA International, NAIFA, and NAILBA, highlights the importance of life insurance in protecting the financial futures of American families and businesses. Includes discussion of the strong public policy behind the current tax treatment of life insurance.

 Annuities: Creating Guaranteed Income for Life

This brief, produced by ACLI, AALU, GAMA International, NAIFA, and NAILBA, highlights the important role of annuities in retirement and the strong public policy behind their tax treatment.

 Tax Policy Supports Risk Transfer

This quick reference chart provides a snapshot of how life insurance, annuities, long-term care insurance, and disability income insurance are taxed at various stages.

 Submission to the President's Economic Recovery Advisory Board's Tax Reform Subgroup