Certainty is a powerful planning tool. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, brings long-awaited clarity to tax policy—especially for those working in estate, business, and retirement planning. By making several key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent, the new law reinforces many of the tools producers and their clients have relied on for years.
With those provisions locked in, the planning environment now offers rare predictability. No looming sunsets. No sudden disruptions. Just a clear window for producers to reengage clients, revisit planning conversations, and reinforce long-term strategies. Clients who’ve hesitated may finally feel secure enough to move forward, especially knowing that life insurance solutions remain fully supported and unchanged under the new law.
Higher Estate Tax Exemption
One of the most significant changes under the OBBBA is the permanent increase to the estate tax exemption. The new law raises the exemption limits for gift, estate, and generation-skipping transfer (GST) taxes to $15 million per individual (or $30 million for married couples filing jointly), with annual adjustments for inflation. This locks in the historically high exemption levels introduced by the TCJA.
For high-net-worth individuals and families, estate planning remains a central priority. Wealth transfers may still trigger significant tax liabilities, and life insurance continues to play a vital role in protecting heirs and offsetting those taxes.
With the TCJA estate tax provisions largely extended, advanced planning tools like irrevocable life insurance trusts (ILITs) remain highly relevant. The newfound clarity empowers clients to move forward with intentional, strategic planning.
Action Steps for Producers
• Review affluent clients’ estate plans to ensure all strategies align with the current tax law.
• Reinforce how life insurance supports effective wealth transfer, charitable giving, and legacy goals.
Clarity for Small Business Owners
Small business owners also benefit from the extension of certain TCJA measures—most notably, the Section 199A qualified business income (QBI) deduction. This valuable provision, which allows up to a 20% deduction on QBI, will now continue beyond 2025.
This ongoing deduction increases after-tax income, affording business owners more flexibility to fund both business needs and personal financial goals. Life insurance continues to play a critical role by supporting succession strategies, risk management, and long-term planning through tools like key person coverage and buy-sell agreements.
In this clearer tax environment, producers can help business owners more confidently budget for these tools and leverage tax savings to support retirement and estate goals.
Action Steps for Producers
• Help business owners allocate tax savings for future growth or to fund life insurance solutions for succession, retirement, or charitable planning.
• Review and update coverage tied to business continuity and risk management.
Retirement Planning with Stability
Retirement savers also stand to benefit from the stability the OBBBA provides. With tax brackets locked in and the deduction for state and local taxes (SALT) increased, individuals can make more confident decisions about how and when to draw income, shift assets, or diversify savings.
Life insurance and annuities remain powerful complements to traditional retirement plans. Depending on the product, they can offer the potential for tax-deferred cash value growth, tax-advantaged withdrawals, and guaranteed income options that can add protection and flexibility—especially when the planning environment feels predictable.
Action Steps for Producers
• Use this period of stability to reintroduce life insurance and annuities as part of a well-rounded retirement strategy, providing both protection and long-term financial confidence.
• Help clients align their policies with long-term goals for income, protection, and legacy building.
Onward and Upward
With the sunset no longer looming, the planning landscape offers unprecedented clarity and stability. This creates an opportunity to strengthen relationships by empowering clients to make informed decisions with fewer unknowns and proactively guiding clients through estate, business, and retirement planning conversations.
Encourage clients who have hesitated to move forward with confidence, knowing the tax environment is steady and predictable for the foreseeable future. Life insurance and annuities remain powerful tools for protecting wealth, supporting business succession, and securing retirement.
Are your clients ready to embrace these opportunities? Now is the time to reach out, revisit their goals, and help them design plans to secure their financial future and protect their legacy.
