What Readers Say
Insuring Americans

• August 2021
• 

To the Editor:

Regarding the article “US Tax Changes Could Make Life Insurance More Popular,” in the June 2021 issue: Time will tell whether the change to IRS tax code section 7702 will make life insurance even more popular than it is today.

What is most important about the change is that it keeps lifetime financial protection through life insurance accessible and affordable to the people who need it most—middle-income America.

It is true that in a low interest rate environment, policyholders will be putting more money into a policy. But that is essential to paying mortality costs that can no longer be paid by interest earnings. The boon is to people who want to protect their families and might not have been able to afford coverage if the legislation had not passed.

As middle-income America seeks financial guarantees like those that only life insurers provide, Congress wisely provided timely relief from outdated laws drafted in a high interest rate environment.

Sincerely,

Paul S. Graham
Senior Vice President, Policy Development
American Council of Life Insurers
202-624-2164
PaulGraham@acli.com