FEATURE
The Taxers Are Coming!
once a decision is made. And although Stevick and other observers are correct that the tax treatment of insurance is often threatened and then saved, Boyle said that’s because someone did the saving. In Washington, the strongest voice is one from a legislator’s district. “Frankly, our products are on the line every year and we’re successful at having them taken off the table,” Boyle said “So it’s not so much crying wolf as it is being prepared and making sure that the folks on the Hill understand.” This is particularly important as the heat turns up. “Look at the desperation and how quickly we have to revisit issues and extend short-term fixes,” Boyle said. “They’ve become much more frequent than what they have been in the past.”
The Most Effective Voice
The most effective voice in Washington is one from a legislator’s own district. “Members of Congress are having to deal with so many issues that they rely on their constituents who have an
understanding in a given area to explain what the realities are with some of the decisions that they’re having to make,” Boyle said. “And that’s what our agents do. And that’s the value of bringing them in and having them share the story.” Bob Roach, a Northwestern Mutual agent from Columbus, Ohio, doesn’t have to go far to talk to an influential legislator. He has one among his clients – Rep. Pat Tiberi, the chairman of the subcommittee that would do the tax-writing for the Ways and Means Committee. Roach says he has been able to impress the value of insurance on not just Tiberi but also his staff members, who would be involved in the nuts and bolts of reform. The most powerful argument is how much money insurance products save for Americans. “I talk to them about the savings rate in America today, and how poor it is, and then point out that over 20 percent of the savings in America today is represented by our products,” Roach said. “To
74%
of business owner clients are missing the most
important component of their retirement.
do anything to discourage people from taking responsibility and using our products, all that’s going to do is further deteriorate the savings rate of Americans today.” Another advisor, Hyatt Erstad of Boise, Idaho, said another reason for his colleagues to contact their representatives is to remind them who they work for. “I think often that legislation passed in Washington, D.C., is intended for people that are doing business on Wall Street, whereas we deal with Main Street people,” said Erstad, who focuses on employee benefits. “We have people who make minimal income, and when an employer provides a retirement plan, it’s our job to sit down and be able to say, ‘Let’s see if we can help you plan for your own security and retirement.’ ” Boyle said that is an important point because if Americans are not planning for their retirement, they will be falling back on the federal government. “We’ve seen what happens when people don’t have protection in place,” Boyle said. “They end up running through
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InsuranceNewsNet Magazine » March 2013
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