Washington, D.C. (February 27, 2014) – The life insurance industry recognizes the efforts of House Ways & Means Committee Chairman David Camp and his entire tax-writing panel to update the nation’s tax code.

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. Congress affirmed the benefits and tax treatment of COLI and assured its responsible use in bi-partisan legislation enacted in 2006.

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. The House Ways & Means Committee – indeed, all of Congress -- should focus on expanding opportunities for individuals to save for their retirement and employers to voluntarily offer workplace retirement plans.

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 American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 300 legal reserve life insurer and fraternal benefit society member companies operating in the United States. ACLI members represent more than 90 percent of the assets and premiums of the life insurance and annuity industry. In addition to life insurance and annuities, ACLI member companies offer pensions, 401(k) and other retirement plans, long-term care and disability income insurance, and reinsurance. ACLI's public website can be accessed at www.acli.com. Contact: Mo Goff, 202-624-2013, morrisgoff@acli.com

The Association for Advanced Life Underwriting (AALU) is a professional trade association representing 2,000 life insurance agents and professionals nationwide, who have significant expertise and are industry leaders in the sale and use of life insurance in estate planning, charitable planning, business continuation planning, retirement planning, deferred compensation and employee benefit planning. The mission of AALU is to promote, preserve and protect advanced life insurance planning for the benefit of its members, their clients, the industry and the general public. AALU’s website can be accessed at www.aalu.org. Contact: Marc Cadin, 202-772-2492, cadin@aalu.org

GAMA International is a worldwide professional association serving 5,500 field leaders in the insurance and financial services industry. Its members recognize their critical role in finding, building and inspiring the next generation of top performers who will, in their turn, lead the industry into the future. To help build these leaders, the association provides its members with professional development resources and opportunities, including educational, networking and leadership. GAMA International’s website is located at www.gamaweb.com.

The Insured Retirement Institute (IRI) is a not-for-profit organization that for twenty years has been a mainstay of service, commitment and collaboration within the insured retirement industry. Today, IRI is considered to be the authoritative source of all things pertaining to annuities, insured retirement strategies and retirement planning. IRI’s members are the major insurers, asset managers, broker-dealers/distributors, and 150,000 financial professionals. IRI exists to vigorously promote consumer confidence in the value and viability of insured retirement strategies, bringing together the interests of the industry, financial advisors and consumers under one umbrella. For more information visit www.IRIonline.org. Contact: Lee Covington, 202-469-3002, lcovington@irionline.org

The National Association for Fixed Annuities (NAFA) is a trade association exclusively dedicated to educating regulators, legislators, journalists and industry personnel about the value of fixed annuities and their benefits to consumers. NAFA's membership represents every aspect of the fixed annuity marketplace, covering 84 percent of fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998 and recently celebrated its 15th year of serving the fixed annuity industry. NAFA is located in Washington, D.C. To learn more, visit www.NAFA.com. Contact: Scott Hinds, 414-332-9306, scott@nafa.com

The National Association of Independent Life Brokerage Agencies (NAILBA) is the premiere insurance industry organization promoting financial security and consumer choice through the use of independent brokerage distribution. The purpose of NAILBA is to serve as the national association of life, health and annuity insurance distributors. Contact: Mark Valentini, 703-383-3073, mvalentini@nailba.org

The National Association of Insurance and Financial Advisors (NAIFA) comprises more than 600 state and local associations representing the interests of approximately 200,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members. www.naifa.org. Contact: Diane Boyle, 703-770-8100, dboyle@naifa.org.