Budget Proposal Puts Restrictions on Business Use of Life Insurance, Internal Value of Variable Life Insurance and Annuities

On February 1, the Obama Administration sent Congress its proposed budget to fund the federal government for the FY 2011, which begins October 1, 2010. Of concern to NAIFA are the Administration’s two proposals that 1) limit the use of life insurance by businesses and 2) drain value primarily from variable life insurance and annuities. Both proposals were put forth in last year’s budget proposal, but rejected by Congress after strenuous objection was mounted by NAIFA. More of the same will be required again.

To learn more about the Administrations’ budget proposal, click here.

NAIFA Staff Contact: Michael Kerley, Senior Vice President – Federal Government Relations, at (703) 770-8155,