AALU's mission to promote, preserve and protect advanced life insurance planning for the benefit of our members, their clients, the industry and the general public reflects each of our primary issue priorities.
Our policy positions are developed through a collaborative process involving the AALU Board of Directors, the life insurance professionals who participate in our Issue Committees, AALU staff and outside expert counsel. Once a policy or position is adopted, our professional team in Washington works with our members to advocate on behalf of the entire AALU membership.
We regularly connect with congressional leadership, members of key congressional committees and their senior staff, as well as administration officials tasked with implementing the laws that impact our members' clients and the life insurance profession.
AALU currently focuses on three primary issue areas:
Life Insurance and Tax Reform Two out of every three American families (75 million) in all rely on the benefits and protection offered by life insurance products. In fact, one of every five dollars in long-term savings is invested in these products. Businesses use life insurance products (often called Corporate Owned Life Insurance (COLI)) to protect businesses and jobs in the event of the death of owners or key employees and to finance and secure important employee benefits. It is essential for the health of the US economy that we preserve and promote these products to ensure that families and businesses are able to utilize them for protection, savings and benefits. As Congress addresses the nation's fiscal problems and considers reforming the tax code, it is important to maintain the current tax treatment of life insurance products.
Estate and Gift Tax Reform Permanent, sustainable estate and gift tax reform is necessary to allow families and businesses to plan for the future with certainty. We believe the lifetime exemptions from the estate and gift taxes - which were reunified by Congress in 2010 - should continue to be linked to encourage earlier, more effective planning by removing a harmful tax incentive to hold assets until death. AALU members clients are often planning in 30+ year windows and a consistent, reliable transfer tax regime is needed to bring stability to the marketplace.
Regulation of Life Insurance Agents AALU members have long been subject to a variety of Federal and State insurance and securities regulations, but the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act ushered in a new era of financial regulation. The Dodd-Frank Act could change several aspects of retail insurance regulation, most notably broker-dealer and investment adviser conduct standards and disclosure requirements, and could also lead to a variety of systemic changes that could impact the entire industry. It is important that this regulatory regime enable our members to continue to properly serve their clients and provide them with the information needed to make informed decisions.