About 1 in 5 Americans live in rural communities. While their surroundings may differ greatly, Americans in rural and urban environments share a fundamental dream: to secure financial certainty for their families.
While no one can predict what the future will hold, everyone can prepare for it. America’s life insurance companies help our customers in cities and towns across the nation plan ahead and prepare to protect their family’s financial future.
That’s why we support the efforts by Representative Adrian Smith (R-NE) and the entire Ways and Means Committee for their foresight as key provisions from the 2017 Tax Cuts and Jobs Act are scheduled to expire at the end of 2025. Rep. Smith is leading the Rural America team, one of 10 established by Committee Chairman Jason Smith (R-MO) and Tax Subcommittee Chairman Mike Kelly (R-PA) that are investigating how changes to the tax code would affect America’s workers, families and businesses.
Rural Americans face many of the same financial challenges as those living in the cities or suburbs. But sometimes their problems are intensified.
For example, according to a recent study by the Women’s Institute for a Secure Retirement and the National Council on Aging, only 1/3 of rural women 25-and-older have retirement savings, compared to nearly half of all similarly aged women nationwide.
Part of the challenge for rural women is that there aren’t as many jobs with 401(k) plans or programs that provide information about saving options in rural areas.
It’s essential that any changes to the tax code don’t make it harder for rural Americans to access affordable financial protection options for their families.
Continued access to financial protection options is essential for another vital reason: Life insurers take the premiums they receive from policyholders and make long-term investments that support local economies across the nation.
For example, life insurers invest $44 billion into Nebraska’s economy. That includes stocks and bonds that help finance business development and create new jobs, as well as agricultural loans, education bonds, residential and retail mortgages and more. In fact, life insurers have more than $618 million in agriculture mortgage loans in Nebraska, including nearly $68 million in Rep. Smith’s 3rd District.
ACLI strongly supports the efforts by Rep. Smith and the Ways and Means Committee to learn more about the possible impact of tax code changes. As Congress considers legislative action, the life insurance industry is committed to working with policymakers to ensure that all Americans – no matter where they live – can protect their family’s financial future.
Rob Reed is President and CEO of Physicians Mutual in Omaha, Nebraska.
