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You win a representative from the American family business institute on bonding company.
To make its case against the estate tax the FBI president Dick Patten had this to say about the life insurance industry's role in the death tax.
So this is a multi billion dollar segment of their industry because of that.
They've been spending ten million dollars a month lobbying to keep the death tax being there one number one issue.
I -- top of the other side of the story Terry Hadley the president of the insurance industry lobbying group and they thought.
Terry welcome to the program is good to see you with us now.
I'm not interested -- in the arguments about whether we should be did -- trying to get rid of the nobility and aristocracy with the estate tax.
I'm interested in your position.
Which is essentially that if you did away with the estate tax you would do away with a big chunk of a life insurance industry that's correct to say that -- -- Well good morning Stuart and thank you for having me.
-- I guess I would somewhat reject that notion.
We have no empirical data that would show how much life insurance is actually sold.
Or purchased by our clients relative to.
Yeah but you notice -- you but you know that the agents who you represent.
Go out and and sell to rich people.
A life insurance policy.
That kicks in when I passed away and the money that they -- is not taxed and will go towards paying the estate tax that's how it looks and that's a big chunk of your business I'm not saying that that's a bad thing.
I'm saying let's be open and honest that's what you're doing.
Well again we we have no evidence as to how or how much life insurance is sold specifically to the -- the state tax caught would you accept -- big chunk of your business.
For many of our members who work in the middle income mark no I would say it is not a extremely large percentage of their overall revenues coming -- that are insurance what do you know.
Qualify that by saying -- middle income business we know -- What about -- high end income business shall you'll acknowledge that life insurance is sold -- of them and a big -- -- business with that group.
Is to pay the estate tax.
Certainly life insurance is one of the planning tools that are available to clients in addition to a number of other planning techniques that are often implemented.
With respect to an estate planning process.
You know Terry I'm trying to give you a commercial via I'm trying to tell people what they may not -- which is that life insurance can be used for estate planning to pay those estate taxes.
No question life insurance is a very efficient vehicle or -- differing.
And providing liquidity for.
And the state and providing a state liquidity for clients and families.
Now we just passed an extension of the estate tax is gonna go to 35%.
On -- over ten million for couples would you like to say go to 55%.
We have all we have never lobbied.
In terms the estate tax exemptions or the raids.
We have always lobbied that we needed certainty with the state tax reform.
Thousand -- isn't it that's that's you all group you represent the individual's the agents as opposed to the life insurance industry which represents the life insurance company is correct.
That is correct we are 200000 members and our associates and we have 600 state and local.
Associations across the country so we are represented in the interest.
Of the individual insurance agent and financial -- Terry -- we thank you very much for joining us.
-- and I'm very -- in the use of life insurance with the estate tax there's nothing wrong with it I think it's a great idea I think -- more about viewers should know about it.
-- thanks for joining us -- we appreciate it thank you thank you thank you for.
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