the industry's leading voice on capitol hill and in state legislatures naifa - membership...

The industry's leading voice on Capitol Hill and in state legislatures

NAIFA - Membership

National Association of Insurance and Financial Advisors

National: http://www.naifa.org State: http://www.naifa-nd.org Local: http://www.naifa-nd.org/local_assoc/local_assoc.html

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Printouts and websites referenced during this presentation

• National: http://www.naifa.org • State: http://www.naifa-nd.org • Local: http://www.naifa-nd.org/local_assoc/local_assoc.html

• Chilling Read – Tax Expenditure List – Slide 7– http://www.naifa-nd.org/membership1/tax_expenditure.htm

• Protecting Your Business – Slide 17http://www.naifa-nd.org/membership1/advocacy1.pdf

• Past Bills monitored by NAIFA-ND http://www.naifa-nd.org/Advocacy/legislation.html

• Eagle Brochure – Slide 23http://www.naifa-nd.org/membership1/eagles-nd.pdf

• Applications for membership – Slide 28• http://www.naifa-nd.org/membership1/naifa_membership.htm

• NAIFA-Local - Brochure• http://www.minot-advisors.com/maifa/maifa_brochure.doc (Example)

• Advocacy at Work - Brief•

http://www.naifa-nd.org/membership1/advocacy_at_work.pdf • What NAIFA Can Do For You - Brochure

• http://www.naifa-nd.org/membership1/member_brochure_2008.pdf• Membership List - http://www.naifa-nd.org/Member%20Directory.htm


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Objective

• Whether it is protecting your industry from unfair taxation or shielding it from stifling regulation that could harm your clients, NAIFA is always working to create a business environment that works for you

• For more than 100 years, NAIFA has been working to protect its members and their clients whenever legislation and regulations are proposed that could negatively impact their business and the products owned by our clients.


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Objective

• We have members in every congressional and state legislative district in every state, and they can get in touch with key policymakers when we need to be heard.

• NAIFA also supports the National Association of Insurance Commisioners’ (NAIC) Interstate Compact—an initiative to reform state insurance regulation by improving speed-to-market for life, annuity, long-term care (LTCI) and disability income insurance products.


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Why should I join this association?

• How do you think the war in Iraq and Afghanistan, hurricane Katrina, floods, future disasters, potential terrorist attacks, $700 billion bank bailout and the monetary impact on our economy could force Congress to look to our industry for future tax revenue?

Here are some questions to ponder…

We, the Financial Industry, are 37% of all tax-advantage instruments in the U.S. according to the Tax Expenditure Book. Congress is looking hard NOW as they need to raise revenue and not raise taxes.


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We are under attack!

What are some of the legislative battles that NAIFA has been in battle for the agent and the consumer?


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Current or past legislative issues that have or will affect the consumers and your business

• IRS 403(b) Regulations

• Exclusion of investment income on life insurance and annuity contracts

• Exclusion of benefits provided under cafeteria plans

• Exclusion of employer contributions for health care, health insurance premiums and long term care insurance premiums

• Exclusion of pension earnings and contributions made by employers

• Exclusion of employer contributions for health care, health insurance premiums and long term care insurance premiums

• Health Savings Accounts

• Deduction for health insurance premiums and long term care insurance premiums for self-employed persons

• SEC to Consider Repeal or Reform of 12b-1 Fees

• Stranger Originated Life Insurance

http://www.naifa-nd.org/membership1/advocacy_at_work.pdf


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A Chilling Read

• Here's a list of major tax expenditures that relate to the business activities of NAIFA members and the revenue loss associated with each over the period 2007-2011: (next page)

A Chilling Read October 15, 2007The Tax Expenditures List

http://www.naifa-nd.org/membership1/tax_expenditure.htm

• Every Sunday, the Washington Post publishes a book review section covering the latest novels and works of nonfiction. The Post has yet to feature a recently published tome authored by the staff of the Joint Committee on Taxation entitled Estimates of Federal Tax Expenditures for Fiscal Years 2007-2011. But if it had, the book would have been listed under the heading "Scary Reading."

• The Joint Tax Committee publication is scary because it clearly lays out exactly where the money is that is not currently taxed—but could be if Congress and the President decided to change course. That's what a tax expenditure is—a revenue loss to the government because of some special provision in the tax law granted by Congress.


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A Chilling Read – (continued)

Revenue Function

Cash Value of Life Insurance/AnnuitiesInsurance Company ReservesDividends/Long-Term Capital GainsCapital Gains at DeathCafeteria PlansEmployer Provided Health/LTC Insurance Self Employed Health/LTC InsuranceHealth Savings Accounts Pension Contributions and Earnings—Employers

IRAsKeogh PlansEmployer Provided Life InsuranceEmployer Provided Accident/Disability Insurance

$150.9$10.7

$631.9

$279.9

$185.5

$628.5

$24.3

$4.6

$607.3

$94.1

$54.4

$13.3

$15.3

Revenue Lost

2007-2011

(in Billions)

$ 2.7 Trillion


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Hunting Season


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A Stroke of a Pen

A simple stroke of the pen could eliminate anyone of the tax advantages that our clients have been enjoying for years.


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A Chilling Read – (continued)• The take away from this Joint Tax work of nonfiction is that the

products and services that NAIFA members use in their daily work with clients receive a lot of special treatment. As the late Sen. Everett Dirksen (R-IL) observed back in the 1960s: "A billion here, a billion there, after a while you got some real money." And it's all neatly laid out on the printed page.• How is the book used? Say you're the federal government and you are running a budget deficit, but you want to stop running a deficit. You can cut spending or increase taxes—or some combination of the two. Or, say, you want to increase the funding for a program favored by the majority in Congress but don't want to increase the deficit. Again, you have the same choices.• Making choices is never easy in Congress, but depending on the political environment, raising taxes on a particular group is usually easier than cutting overall federal spending. That's the robbing Peter to pay Paul principal. Just ask the tobacco industry. The bulk of the funds ($35 billion over five years) needed to pay for the congressional plan to beef up the State Children's Health Insurance Plan (S-CHIP) would come from an increase in tobacco taxes. Say what you will about tobacco, but the point is clear. If Congress wants to do something, and it needs money to do it, it knows just where to find it. It's all in the book.


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Pay-Go – What is it and how can it affect you and your clients?

• What does all this budget mumbo jumbo have to do with NAIFA members, you might ask? Let’s say that the Congress wants to repeal the Alternative Minimum Tax, which, indeed, leaders on both sides of the aisle have said is a priority for this Congress. Eliminating the AMT will lose about $50 billion a year in tax revenue. If the Pay-Go rule says Congress must raise $50 billion in new tax revenue to offset the $50 billion lost by repealing the AMT, where is Congress going to get it?

(Continued)

• House restored what is known in the Congress as the “Pay As You Go” rule, or “Pay-Go, ” which had been allowed to expire in 2001

• Pay-Go simply requires Congress to decrease spending in one area of the budget equal to the amount of desired increased spending in another area. Or, in the case of tax matters, Congress must increase taxes in one area if the Congress wishes to decrease taxes in another.


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Pay-Go – What is it and how can it affect you and your clients? (continued)

• Well, let’s see. Life insurance and annuity cash values get about $29 billion in favorable tax treatment per year. Employers get a tax break in the range over $100 billion a year for employee health insurance. Self-employed persons get the same break in the amount of approximately $5 billion per year. Employer group life and disability insurance is worth over $5 billion a year in tax breaks. And, employer and individual contributions to various retirement plans runs in excess of $150 billion of tax breaks a year.

• You don’t have to be Willie Sutton (a notorious bank robber) to know that to raise new tax money, the first place to go is where the money is—current tax deductions and exclusions. As a whole, the products and services insurance agents and financial advisors deal in make up in the range of 40 percent of all the income in the country that currently receives favorable tax treatment.


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Pay-Go – What is it and how can it affect you and your clients? (continued)

• After the House finished voting to restore the Pay-Go rules, Chairman Rangel acknowledged that pay-go would put him in a tough spot, but would be “good for the country.” He further indicated that he was scouring the tax code for tax breaks that benefit “special interests” and admonished the beneficiaries of those tax breaks that if they “don’t raise their hands, (the tax break) is out.” Chairman Rangel went on to say: “At this point, nobody ... has convinced me that there should be exemptions from pay-go.”

• That’s about as clear a message as you are likely to ever hear from Congress. If insurance agents and financial advisors want to retain the favorable tax treatment currently granted to their products and services, they better to be prepared to “raise their hands!”


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This could be a real headline someday if we are not effective as an association

COST OF WAR ONTERRORISM

DOUBLESCONGRESS VOTES TO TAX

LIFE INSURANCE PROCEEDS TO

PAY FOR IT

COST OF WAR ONTERRORISM

DOUBLESCONGRESS VOTES TO TAX

LIFE INSURANCE PROCEEDS TO

PAY FOR IT


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NAIFA’s political prowess exists largely because of two constants in its government-relations arsenal—APIC and IFAPAC.

Power behind our Success

– APIC Advisors Political Involvement Committee is a group of

NAIFA members who have developed and maintain influential relationships with state and federal elected officials.

– IFAPAC Insurance and Financial Advisors Political

Action Committee A group of 15,000 NAIFA members who contribute

nondues funds ranging up to $5,000 every year to a separate fund used to support the campaigns of candidates for federal and state legislative offices.


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Our Strengths …NAIFA – National, State, & Local

• National – Federal Legislative IssuesNAIFA – Nationalwww.naifa.org

Federal Issues

NAIFA-NDwww.naifa-nd.org

State Issues NAIFA-Localshttp://www.naifa-nd.org/local_assoc/local_assoc.html

Grassroots

• State – State Legislative Issues

• Local - Grassroots


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Legislation is monitored daily in Washington by NAIFA-National

Membership kept alert via the following:

(Click here to read “Protecting Your Business” article)(Click to review NAIFA monitoring

venues) web accesss


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Federal Legislative GridState & Federal


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No one else has the ability that NAIFA and its state associations have to do grassroots advocacy on a truly grass roots level. We have members in every congressional and state legislative district in every state, and they can get in touch with key policymakers when we need to be heard.

NAIFA has clout…

Do you think anyone else with this kind of clout is looking out for you and your livelihood?


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Key Benefits to membership in NAIFANAIFA is your connection to ….

• Financial freedom for your clients and financial independence for yourself (One study shows that NAIFA members produced 62% more premium and wrote 40% individual policies than their non-member colleagues).

• Unparalleled legislative regulatory advocacy. NAIFA’s fundamental role and primary reason to exist is to be the advocate for the agent/advisor and the clients we serve. Advocacy is NAIFA’s core business.

• Strength in numbers – 60,000 members strong and growing

• Networking, sales ideas, and practice specialties. NAIFA delivers member benefits that give our members a competitive advantage in today’s insurance and financial services marketplace.

• Lifetime learning, education, and professional development. Every tool and resource for building a successful business and a healthy bottom-line is available through NAIFA


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Some of our Corporate Sponsors• Aflac• Allstate Insurance Company• American Family • AIG American General• AVIVA• Country Insurance & Financial Services• Farmers• Grange Life Insurance Company• Guardian• Kansas City Life• MetLife• Modern Woodmen of America• Monumental• Mutual of Omaha• National Life• New York Life • Northwestern Mutual• Northwestern Mutual Financial Network Invests in NAIFA Membership Growth

OneAmerica Financial Partners, Inc.• Penn Mutual• Principal • Southern Farm Bureau• State Farm• Transamerica• UNIFI Companies • Western & Southern Life• Woodbury Financial


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NAIFA Local Activities…

• Monthly meetings with CE Credits – varies by local

• Meals (check with local to see if meal included in dues)

• Legislative Forum• Annual Blitz (generally 5 to 10continuing education credits)

• Motivational speakers• Annual State Convention• Opportunity to get involved in the

leadership of the local association or state• Annual Golf Outings• Access to our locals sales and marketing site


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It has been said that eagles don’t flock together…(Click here for copy of brochure) weblink


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Eagles flock together for their protection…Proving there is safety in numbers.


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We have all drank from the well…


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Call to Action

• We have all drank from the well

• How would your business be affected if Congress took away the tax benefits from the products you sell?

• For about a cup of coffee a day, you will have taken an important step to protect your clients and your business.


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Call to Action

-- Theodore Roosevelt

“Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve conditions within his sphere."


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Investment in NAIFA

Minot

Missouri Slope - Bismarck

Roughrider - DickinsonLake Region - DL

Central - Jamestown

Fargo Moorhead

North Valley - GF

Click on your local for detailed information on duesClick on your local for detailed information on dues


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Investment in NAIFA – Fargo Moorhead2008 - 2009 Dues Structure Dues if paid annually in lump sum =

$374.00 Due if paid via monthly draft = 31.67 (includes $.50 monthly bank or credit card

fee)

Breakdown of dues: National: $ 190.00 State: 87.00 Local: 97.00 Total: $ 374.00

Three options to belong to NAIFA• Lump sum annual

• Monthly Bank Draft

• Monthly Credit Card

Which method of participation makes the most sense to you?

Click here for printable application

Click here for online application

Payment Option Card


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Thank you for your consideration

We look forward to your involvement in NAIFA


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Investment in NAIFA – North Valley2008 - 2009 Dues Structure Dues if paid annually in lump sum =


fee)








Payment Option Card


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Investment in NAIFA – Missouri Slope2008 - 2009 Dues Structure Dues if paid annually in lump sum = $352.00

Due if paid via monthly draft = 29.83 (includes $.50 monthly bank or credit card fee)








Payment Option Card


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Investment in NAIFA – Central2008 - 2009 Dues Structure Dues if paid annually in lump sum = $346.00









Payment Option Card


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Investment in NAIFA – Lake Region2008 - 2009 Dues Structure Dues if paid annually in lump sum =


fee)








Payment Option Card


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Investment in NAIFA – Rough Rider2008 - 2009 Dues Structure Dues if paid annually in lump sum =


fee)








Payment Option Card


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Investment in NAIFA - Minot2008 - 2009 Dues Structure - Minot Dues if paid annually in lump sum = $391.00









Payment Option Card


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the industry's leading voice on capitol hill and in state legislatures naifa - membership...

Documents

brochure http

naifand http

originated life insurance

business slide

membership list http

tax expenditures list

health insurance premiums

membership slide