Sioux City Times

Today, U.S. Representative Randy Feenstra introduced the Secure Family Futures Act, legislation directed toward better tax treatment for debt investments by insurance companies. Co-sponsoring the bill is U.S. Representative Terri Sewell from Alabama. The proposed changes aim to lower life insurance policy costs for American families by adjusting the tax code.

Rep. Feenstra emphasized the financial challenges that the current tax law poses for families, stating, "Our tax code needs to support the financial security of our families and help Iowans save for the future. But current tax law doesn’t recognize how insurance companies are able to meet their obligations to their policyholders, putting unnecessary costs on life insurance and the financial security it brings to families across America."

Rep. Sewell explained the economic benefits, saying, "Investments in bonds are investments into American businesses and our communities. The Secure Family Futures Act is a major step that will ensure such investments provide returns to policyholders while simultaneously improving our economy through job growth and innovation."

The bill also received support from Rep. Mike Flood, who highlighted the role of insurance products in responding to natural disasters. He stated, "Insurance products are helping Americans navigate historic fires, floods, and other storms. Aligning tax treatment for bonds held by insurance companies with the banking industry will help give insurers fair tax treatment as they work to pay out claims to their clients."

The American Council of Life Insurers' President, David Chavern, endorsed the bill, citing its potential to bolster the economy and improve access to life insurance. He remarked, "Life insurers protect families and help fuel the American economy, investing $8 trillion in businesses, infrastructure, job creation, and more that put life into communities nationwide. These investments secure life insurers’ financial guarantees while providing essential capital that keeps America thriving."

MetLife's Global Tax Director, Kenneth LaGuardia, also voiced his approval, noting that the bill addresses inconsistencies in current tax code treatment: "MetLife applauds the bipartisan introduction of the Secure Family Futures Act. We believe this bill would improve the financial resilience of families and remove a barrier to more investments in the U.S. economy."

The life insurance industry in Iowa is significant, supporting nearly 54,000 jobs and contributing $66 billion in investment and $4.6 billion in benefits to Iowa families.