Feenstra Leads Legislation to Fix Tax Code and Support Financial Security for Iowa Families

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) introduced the Secure Family Futures Act to apply ordinary treatment of debt investments for insurance companies, which in turn, would help secure life insurance policies – at a lower cost – for American families.

U.S. Rep. Terri Sewell (D-AL) is an original cosponsor.

“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 policy holders, putting unnecessary costs on life insurance and the financial security it brings to families across America,” said Rep. Feenstra.  “We need to fix this misalignment in our tax code so that life insurers can continue to offer affordable policies to Iowa families without facing burdensome hurdles. As a member of the House Ways and Means Committee, I’m proud to lead the charge to repeal capital treatment for debt investments and help every Iowa family achieve financial security and prepare for tomorrow.”

“Investments in bonds are investments into American businesses and our communities,” said Rep. Sewell. “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.”

“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,” said Rep. Mike Flood. “Thanks to Congressman Feenstra and Congresswoman Sewell for helping lead this effort and I look forward to working with my colleagues in the House on this issue that’s critical to keeping insurance affordable for working Americans.”

“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. At the same time, the returns help make life insurance more affordable and accessible,” said American Council of Life Insurers President and CEO David Chavern. “Rep. Feenstra’s bill supports these important societal needs and will greatly benefit people in Iowa and across the country. It makes crucial updates to the tax treatment of life insurers’ bond investments that will drive more economic growth and help more Americans and businesses secure their financial futures.”

“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,” said Kenneth LaGuardia, Global Tax Director of Metlife. “The Secure Family Futures Act fixes an inconsistency in the current tax code impacting the tax treatment of insurers’ debt investments and their role in the operations of insurance companies. Similar to other financial institutions, we believe these debt investments should be considered as inventory and part of an insurer’s ordinary course of business. The Secure Family Futures Act would fix this outdated tax treatment and apply equal tax treatment to insurance companies.”

Iowa’s life insurance industry supports nearly 54,000 jobs, $66 billion in investment, and $4.6 billion in benefits paid to Iowa families.

Full legislative text can be found HERE.

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