Columbia, SC — If you own a life-insurance policy, any cash value that builds up over time is tax-deferred. The death benefit, which will provide for your family if you are unable to, is not taxed.
But as Congress considers overhauling the federal tax code to close the budget deficit, even the tax status of life insurance and annuity products could be on the table.
I recently joined 1,000 of my colleagues from the National Association of Insurance and Financial Advisors in Washington to visit every congressional office and tell our clients’ stories. We want Congress to know how life insurance lets parents sleep at night, confident that their children will be taken care of financially — even if they are no longer around. We want them to know how insurance empowers people to be self-sufficient rather than placing added burdens on strained government programs.
In South Carolina, more than 3 million people own individual life insurance policies, with others benefiting from group coverage.
Now, more than ever, it is important for Congress to hear about the important ways life insurance contributes to the economy and the financial health of Americans.
Congress and the president should realize that the overwhelming good that life insurance does for consumers and society far outweighs any short-term gain that may come from taxing these products.
Bruce J. Pope