Analyst Weighs Candidates' Impact On Life Industry

Still, the analyst doesn’t see much chance of a permanent repeal even if Bush is reelected. It’s just too expensive and is opposed by too many Senate Republicans, he says.

President Bush also has proposed two tax-advantaged savings plans that could hurt sales of annuities, while Kerry would likely steer clear of both, Kligerman believes.

But Bush’s lifetime savings accounts, which would negatively affect annuity sales the most, is not likely to pass Congress, while the other plan, retirement savings accounts, probably wouldn’t have much of an impact, he adds.

Both candidates generally support another proposal that could the industry a boost: tax deductions for annuity payouts and long term care insurance. But each side disagrees on the cost and timing of their proposals, the analyst notes.