Washington, D.C. – The American Council of Life Insurers (ACLI) today said bipartisan legislation introduced by Sen. Bob Casey, D-PA, and Sen. Thom Tillis, R-NC, would make an overdue update to the tax code to substantially benefit communities in Pennsylvania, North Carolina and across the country.

The measure would help life insurance companies continue operating as a major source of capital for innovation, education, infrastructure, agriculture, residential mortgages and job creation.

Life insurers invest $584 million daily in the U.S. economy in corporate bonds, municipal bonds, various types of mortgages and more. The returns on these investments help keep life insurance accessible and affordable.

Life insurers’ back their guarantees on long-term commitments to individuals and families needing life insurance for financial protection, annuities for guaranteed lifetime income, and other financial products to navigate financial shocks. For example, nearly 75% of life insurer-purchased bonds have a maturity of 10 years or more at the time of purchase.

The Secure Family Futures Act of 2024 would repeal the outdated capital tax treatment of debt investments held by life insurers, such as bonds, and apply ordinary tax treatment to them. Investments in bonds are like a manufacturer’s inventory which receives ordinary tax treatment.

“Without the adjustment proposed in the legislation, the ability of life insurers to continue their distinctive, long-term investments in communities throughout America would lessen substantially. Closing the financial protection coverage gap for families and communities most in need could be hampered due to higher costs on consumers if Congress fails to enact the legislation,” ACLI President & CEO Susan Neely said.

In Pennsylvania, life insurers at year-end 2022 had:

• Invested $244 billion in the state’s economy;
• Paid out $11.7 billion in life insurance and annuity benefits;
• Generated 128,500 jobs.

In North Carolina, life insurers at year-end 2022 had:

• Invested $180 billion in the state’s economy;
• Paid out $7.8 billion in life insurance and annuity benefits;
• Generated 79,000 jobs. 

In the United States, life insurers have $7.5 trillion invested in the U.S. economy, paid out nearly $200 billion in life insurance and annuity benefits, and generated 2.8 million jobs in 2022.

“With their legislative proposal, Senators Casey and Tillis are providing important, bipartisan leadership for communities and families,” Neely added.

The American Council of Life Insurers (ACLI) is the leading trade association driving public policy and advocacy on behalf of the life insurance industry. 90 million American families rely on the life insurance industry for financial protection and retirement security. ACLI’s member companies are dedicated to protecting consumers’ financial wellbeing through life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, and dental, vision and other supplemental benefits. ACLI’s 275 member companies represent 93 percent of industry assets in the United States.

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