Life insurers are strong believers in planning ahead, as we make promises to policyholders that might not come due for decades. We use our expertise and experience in long-range planning to help our customers plan and prepare for the unexpected.
That’s why we appreciate the efforts by Representative Kevin Hern (R-OK) and his Ways and Means Committee colleagues who are planning ahead as key provisions from the 2017 Tax Cuts and Jobs Act are scheduled to expire at the end of 2025. Rep. Hern is leading the Global Competitiveness team, one of 10 established by Committee Chairman Jason Smith (R-MO) and Tax Subcommittee Chairman Mike Kelly (R-PA) to examine how changes to the tax code would affect America’s workers, families and businesses.
America’s economy is the envy of the world. But in today’s competitive global market, nothing can be taken for granted.
To remain competitive, businesses need to attract and retain key talent. That’s why companies partner with America’s life insurers to provide employee benefit packages including retirement plans, life insurance, paid family and medical leave, disability insurance, dental insurance and more.
Another key to American economic success is access to capital that fuels companies’ growth.
Life insurers help America’s companies grow by taking premiums received from their policyholders and investing those funds in stocks, bonds and mortgage loans across the United States. Life insurers are a major source of bond financing for U.S. businesses, holding more than 23% of all U.S. corporate bonds. American firms use these funds to upgrade facilities and workplaces that foster productivity and innovation.
Life insurers also invest heavily in bonds that support utilities and transportation infrastructure improvements, which are essential for economic development. All told, life insurers invest $7.5 trillion in the U.S. economy, making life insurance companies one of the largest sources of investment capital in the nation. That includes $58 billion in Oklahoma. Among those investments are $53 million in industrial mortgage loans and $25 million in transportation infrastructure bonds in Tulsa.
For more than 175 years, America’s life insurers have been providing essential benefits to families, good jobs for workers and long-term investment capital that fuels economic growth. As Congress considers updating the tax code, we are committed to work with policymakers to ensure that any changes support American businesses and families.
NAIFA-Oklahoma Grassroots Chair Charlie Potts is from Oklahoma City.
