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Repealing the Estate Tax Might Affect Life Insurance Sales


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Trump Administration Puts Repealing Estate Tax on It’s Priority List

 

The Trump Administration has made it clear that repealing the estate tax is on the top of their priority list. In April 2017, LIMRA asked 24 U.S. insurers how they thought this would affect life insurance sales. Find out how your insurance business will be effected, and learn how insurance leads can help.

 

Current federal estate tax laws only apply to estates exceeding $5.49 million per person. Americans can leave an unlimited amount of assets to spouses, so the threshold for married couples is $10.98 million. Roughly 0.2% of Americans, or one out of every 500 people who die are impacted by the estate tax. The estate tax also applies to family-owned businesses and farms.

 

Four percent of the life insurance market includes survivorship life insurance which is intended to pay federal estate taxes and other estate settlement costs. Survivorship life insurance also makes up ten percent of premium for companies who offer it annually.

 

All life insurance carriers surveyed – which represents 64% of the survivorship life insurance market – believe that repealing the estate tax would have a negative impact on survivorship life insurance sales. Four in ten carriers think it would have a significant negative impact on survivorship life insurance sales, and 54 percent think it would have a minor negative impact on life insurance sales overall.

 

Six in ten of the carriers surveyed do not expect the U.S. estate tax law to change this year, but if repealed those surveyed believe it would have a negative impact on life insurance sales the following year.

 

How ParasolLeads Can Help

 

Increase life insurance sales with the best insurance leads on the market. Parasol Leads is the best insurance leads company because we deliver high quality life insurance leads in real time. Learn more about our life insurance leads.

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