Senators Thom Tillis and Raphael Warnock have introduced bipartisan legislation aimed at updating the tax treatment of debt investments for life insurers. The Secure Family Futures Act seeks to repeal current capital tax treatment for such investments, including bonds, and apply ordinary tax treatment.
“This commonsense legislation ensures debt investments made by insurance companies are treated equally under our tax code,” stated Senator Tillis. He believes the changes will enable insurers to encourage economic growth and community investment both locally and nationally.
Senator Warnock emphasized the importance of life insurance in providing peace of mind, advocating for the act as a means to make life insurance more accessible and affordable through straightforward tax code adjustments.
David Chavern, President & CEO of the American Council of Life Insurers, highlighted the significant role of life insurers in the economy, stating that their broad investments benefit communities and strengthen financial protection for families and businesses. He supports the bill as a way to enhance economic growth and aid in financial security.
Chris Payne from Principal Financial Group praised the proposed changes as necessary corrections to the existing U.S. Tax Code, allowing insurers to better fulfill their mission of fostering financial security for families and small businesses.
MetLife has expressed support through a letter, and the full text of the legislation is publicly available.
