GUARANTY INCOME LIFE INSURANCE COMPANY

Press Release
Support of "Above-the-Line Tax Deduction for LTC Insurance Premiums"

July 2, 2003. Baton Rouge, LA. "We need to encourage Congress to act on Financial Security Issues before it is too late!" stated John Lancaster, President of GILICO. Saving for retirement is important; however, today Americans need to protect their savings from the escalating costs for long-term care services.

Soaring costs and rising demand for long-term care services could deplete personal savings and exhaust government entitlement programs. Long-term care insurance can protect individuals and families from catastrophic financial risks when long-term care services are needed, and ease the strain on public programs.

GILICO actively supports legislation encouraging Americans to take personal responsibility for their long-term care needs through private long-term care insurance.

Congress should amend the tax code to permit individuals to deduct all long-term care insurance premiums above-the-line as an adjustment to income, conforming the tax treatment of long-term care insurance to that of other standard retirement tools, like IRAs. Long-term care insurance should also be permitted as options in flexible spending accounts and cafeteria plans.

Creating an above-the-line tax deduction for long-term care insurance premiums would send a clear signal from the government that individuals need to better plan for retirement and take personal responsibility for their long-term care needs.

Fortunately, many members of Congress agree!

Representatives Nancy Johnson (R - CT) and Earl Pomeroy (D - ND) introduced H.R. 2096 on May 14, 2003. This proposed legislation called the "Long-Term Care and Retirement Security Act of 2003" would: (1) Create a tax deduction for people who purchase LTC policies, (2) Permit LTC insurance policies to be offered under employer-sponsored cafeteria plans and flexible spending accounts and (3) Provide a $3,000 tax credit for caregivers.

A companion bill was introduced in the Senate last week as S. 1335 by Senators Charles Grassley (R - IA) and Bob Graham (D - FL). This bill has 13 Senator co-sponsors and was referred to the Senate Finance Committee on June 25, 2003.

We encourage all GILICO employees, agents and policyholders to please contact your Congressional Representatives and Senators to express your support for this needed legislation.

Guaranty Income Life Insurance Company was founded in 1926 and is a Legal Reserve Insurance Company currently licensed in 31 states. In addition to cost-effective life insurance, long-term care and annuity programs, GILICO offers products and services to help families meet their financial needs of wealth protection and wealth creation today and in the future.