The Power of You. The Power of Us.

The Power of You becomes unstoppable when it’s combined with the power of NAIFA’s formidable advocacy program.

By Diane Boyle

Does the federal government sometimes remind you of a client who can’t quite figure out how to live within their means? It’s no secret that our country perpetually spends more than it brings in. Even before March of this year, the United States had an outstanding debt of around $23 trillion, a figure that has grown every year since 1957.

The COVID-19 pandemic is a generational catastrophe that threatened not just the bodily health but the financial health of every American and shook the foundations of our economy. Skyrocketing unemployment, salary and wage cuts, and increased business failures demanded government action.

In response, Democrats and Republicans in Congress, as well as the Trump administration, staked out elusive common ground and passed more than $3 trillion in relief and recovery legislation. Under the circumstances, it’s hard to argue this wasn’t the right thing for our leaders to do.

But even necessary massive spending packages do nothing to change the fact that there is a reckoning in our future. At some point, perhaps sooner than later, the bill will come due.

NAIFA is an advocacy organization, and we are the strongest when every member plays an advocacy role.

The Vital Role Of Insurance And Financial Services

The products and services insurance and financial professionals provide have always been part of the solution. They give Main Street American families and businesses the ability to take responsibility for their own financial security and provide themselves and their workers with opportunities to attain prosperity.

Between 2010 and 2017, Americans received more than $1.1 trillion in life insurance benefits, annuity contract payments and disability income payments, according to a study by the Brattle Group and presented by MetLife. This amount represents the equivalent of 20% of Social Security benefits paid over the same period. With policies in force providing $19.6 trillion worth of financial protection, equal to about 95% of the U.S. GDP, the insurance and financial services industry is an obvious driving force in the U.S. economy.

Federal lawmakers have traditionally recognized that life and annuity products are an important safety net and a source of security for tens of millions of American families. Thanks to the advocacy efforts of NAIFA and our industry, they have resisted urges to tax life insurance death benefits or to levy new taxes on the savings in life insurance and annuity contracts. They have also made policy decisions to encourage the access of consumers, employers and employees to retirement-savings products, workplace benefits, private health insurance and other products and services financial professionals offer.

But the ballooning federal deficit could make those urges to seek new sources of revenue stronger than ever. Our industry will not escape lawmakers’ scrutiny, especially by those newly elected to office. And the threat isn’t contained to the federal level. It extends down to the states as well. State efforts to increase revenue, impose restrictive fiduciary rules and create government-sponsored retirement programs, among other initiatives, will need to be addressed. Legislative and regulatory threats to your business and your clients’ wellbeing may now be greater than at any time in recent history.

The Power Of You

NAIFA is an advocacy organization, and we are strongest when every member takes an advocacy role. You can make a difference, whether by serving as a contact for state or federal lawmakers, participating in state or federal grassroots events, answering NAIFA’s Advocacy calls to action, or contributing as a NAIFA member to IFAPAC.

You make a difference because you hold influence with your elected officials. You can educate them on the importance of insurance and financial advisors and the products, services and guidance you provide to your Main Street USA clients. You have an authentic voice and compelling stories that can influence legislators in ways that professional lobbyists simply cannot. That’s the power of you.

Your power as an individual is that you represent your community and understand its needs when it comes to increasing financial literacy, preparing for life’s inevitable financial risks, planning for a secure retirement and setting up hard-working Americans to leave a financial legacy.

The Power Of Us

The Power of You becomes an unstoppable force when it’s combined with the Power of Us. As NAIFA members, you are part of the most formidable grassroots army in our industry. You have the backing of NAIFA’s clout and prestige. We have members in all 435 congressional districts across the United States.

That is why, beyond Washington, D.C., we have a presence and influence in every state capital. When legislation or regulations arise that threaten your business and clients—or ones that help you do your job better—you can be sure that NAIFA is present and advocating on your behalf.

We are all in this together, and together, we can take on anything. That’s the power of you and the power of us.

Diane Boyle is Senior Vice President, NAIFA’s Government Relations. Contact her at dboyle@naifa.org