Model Audit Rule
Consumers Estimate Impact Of Estate Tax Repeal
A research firm continues to weigh the implications of repealing the estate tax on life insurers, and in so doing, is uncovering a gap among younger and older, and richer and poorer respondents.
The survey also finds a wide disparity between the anticipated impact of an estate tax law change and the actual impact on most survey participants.
A total of 39% of respondents expect to pay estate taxes when in reality only 1-2% of Americans really do, according to Doug Cottings, a senior vice president and financial services sector head in the firm’s Charlotte, N.C. office. So, in the survey, approximately 10 respondents of the 1,003 would pay estate taxes, he says.
The survey also found among other things that wealthier and older participants are more likely to own life insurance than younger, lower-income survey participants.
When participants in a survey of 1,003 participants conducted and funded by Ipsos-Insight, were asked if they own life insurance, the affirmative responses by age were: 53%, age 18-34; 73%, age 35-54; and, 75%, age 55+. By income, affirmative responses were: 49%, under $25,000; 67%, between $25,000 and $50,000; and, 79%, over $50,000.
The issue was one raised earlier this year when insurers, producers, and regulators argued the merits of a limited term insurance license during quarterly meetings at the National Association of Insurance Commissioners, Kansas City, Mo.