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Tax reform could impact those who own life insurance

BY SUSAN WATERS Published: January 4, 2013

If tax reform makes life insurance less attractive, more families will certainly look to government entitlement programs to provide for them in difficult times. Yet tax reform in 2013 could put it all in jeopardy. Lawmakers from both parties have indicated that every potential source of revenue will be on the table.

The insurance industry plans to make sure that members of Congress remain well aware of the importance of life insurance and its historical treatment under the tax code. Congress and the president should quickly realize, just as their predecessors have since 1913, that the overwhelming good life insurance does far outweighs any short-term gain that may come from taxing these products.

Waters is CEO of the National Association of Insurance and Financial Advisors.