NAIFA Membership

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NAIFA - Membership

• National Association of Insurance and Financial
  Advisors

National http//www.naifa.org State
http//www.naifa-nd.org Local
http//www.minot-advisors.com
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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.minot-advisors.com
• Chilling Read Tax Expenditure List Slide 7
• http//www.minot-advisors.com/maifa/tax_expenditur
  e.htm
• Protecting Your Business Slide 17
• http//www.minot-advisors.com/membership1/advocacy
  1.pdf
• Past Bills monitored by NAIFA-ND
  http//www.minot-advisors.com/membership1/billstat
  us.html
• Eagle Brochure Slide 23
• http//www.minot-advisors.com/membership1/eagles-m
  inot.pdf
• Applications for membership Slide 28
• http//www.minot-advisors.com/membership1/naifa_me
  mbership.htm
• NAIFA-Minot - Brochure

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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

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

• 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.

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Why should I join this association?
Here are some questions to ponder

• 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?

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

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

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

• Health Savings Accounts

• Exclusion of pension earnings and contributions
  made by employers

• Stranger Originated Life Insurance

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

• IRS 403(b) Regulations

http//www.minot-advisors.com/presentation/advocac
y_at_work.pdf
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A Chilling Read
A Chilling Read October 15, 2007 The Tax
Expenditures List http//www.minot-advisors.com/
maifa/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 taxedbut could be
  if Congress and the President decided to change
  course. That's what a tax expenditure isa
  revenue loss to the government because of some
  special provision in the tax law granted by
  Congress.

• 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)

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A Chilling Read (continued)
Revenue Lost 2007-2011 (in Billions)

• Revenue Function
• Cash Value of Life Insurance/Annuities
• Insurance Company Reserves
• Dividends/Long-Term Capital Gains
• Capital Gains at Death
• Cafeteria Plans
• Employer Provided Health/LTC Insurance
• Self Employed Health/LTC Insurance
• Health Savings Accounts  
• Pension Contributions and EarningsEmployers 
  
• IRAs
• Keogh Plans
• Employer Provided Life Insurance
• Employer 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
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 taxesor 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?

• 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.

• What does all this budget mumbo jumbo have to do
  with NAIFA members, you might ask? Lets 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)

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

• Well, lets 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 dont 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
  iscurrent 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 dont 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.

• Thats 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
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Power behind our Success

• NAIFAs political prowess exists largely
  because of two constants in its
  government-relations arsenalAPIC and IFAPAC.

• 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
NAIFA National www.naifa.org Federal Issues

• National Federal Legislative Issues

• State State Legislative Issues

• Local - Grassroots

NAIFA-ND www.naifa-nd.org State Issues
NAIFA-Minot www.minot-advisors.com Grassroots
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Legislation is monitored daily in
Washington by NAIFA-NationalMembership 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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NAIFA has clout
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.
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 .

• Unparalleled legislative regulatory advocacy.
  NAIFAs fundamental role and primary reason to
  exist is to be the advocate for the agent/advisor
  and the clients we serve. Advocacy is NAIFAs
  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
  todays 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

• 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).

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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

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NAIFA-Minot Local Activities

• Monthly meetings at Sevens Restaurant
  generally 1 CE monthly 9/year CE value 75
• Meals included in membership investment 72
  value
• Legislative Forum Generally the month of
  October
• December Annual Blitz (generally 5 to 10
  continuing education credits)
• January motivational speaker
• February State Convention
• April opportunity to get involved in the
  leadership of the local association or state
• June annual picnic with family and our local
  legislators
• Access to our locals sales and marketing
  site

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It has been said that eagles dont flock together
(Click here for copy of brochure) weblink
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Eagles flock together for their
protectionProving 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

• 2008 - 2009 Dues Structure - Minot Dues if paid
  annually in lump sum 391.00   
• Due if paid via monthly draft    33.08 
  (includes .50 monthly bank or credit card fee)
• Breakdown of dues
•  National     190.00
•  State             87.00
•  Local          114.00
•  Total         391.00

Click here for printable application
Payment Option Card
Click here for online application
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?
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Thank you for your considerationWe look forward
to your involvement in NAIFA