National Association of Insurance and Financial Advisors (NAIFA) Overview
The world of the finance and insurance industry can be incredibly convoluted.
With the waters often being dark and murky, it can be difficult to understand exactly what is happening. Thatās where a trade organization can come in handy.
For the insurance and finance world, people can turn to the National Association of Insurance and Financial Advisors. But what exactly is NAIFA? Read on as we take a look at the trade organization and give you a detailed overview.
Table of Contents
KEY TAKEAWAYS
- NAIFA is a professional trade organization.
- It works on behalf of its members in order to promote a regulative environment that is more favorable.
- It provides professional education services and makes sure ethical standards are kept.
- It is one of the biggest trade groups in the financial industry.
- NAIFA was founded in 1890, and was originally known as NALU.
What Is the National Association of Insurance and Financial Advisors?
NAIFA is a professional association trade organization for financial advisors and insurance professionals. It is one of the biggest trade groups in the entire financial industry.
The aim of NAIFA is to promote a favorable legislative and regulatory environment for its members. It also provides professional education services to improve their professional skills and ensure professional development.
The organization also ensures ethical professional conduct for advisors of finance and insurance. It provides its members with networking facilities and sales training as well as many other tools to help them build their practices, become successful and ensure their financial security.
The organization is also known to lobby on Capitol Hill. This is with the aim of promoting favorable legislation for the financial and insurance advisory industry. NAIFA represents financial professionals in all of the 50 states of the United States. It has at least one local chapter in every state, as well as the District of Columbia. The headquarters of the organization is situated in Falls Church, Virginia.
A Short History of the NAIFA
Founded on June 18, 1890, NAIFA was originally known as the National Association of Life Underwriters (NALU). It was only in 1999 that the National Council voted to change the associationās name to NAIFA.
NAIFA receives a large number of endorsements from prominent insurance and financial corporations. The employees of these corporations are encouraged to join a local NAIFA chapter. Some leading companies support NAIFA by contributing towards dues payments and other ones cover the payments for their employees.
One of the NAIFAs main goals is to promote life insurance and other risk mitigation as the core of a strong financial plan. But their overarching purpose is to ensure professional and ethical conduct among all financial advisors and insurance representatives.
What Is the Purpose of NAIFA?
Members of NAIFA provide their clients with:
- Life insurance and annuities
- Employee benefits and health insurance
- Multiline insurance products
- Financial advice
Members of NAIFA include a wide range of professionals. Such as:
- Insurance agents
- Financial advisors
- Health insurance and employee benefits specialists
- Multiline agents
NAIFA claims to be the top association for producers in financial services.
What are the Benefits of Joining NAIFA?
NAIFA is the leading lobby in the insurance industry in Washington, D.C. and in state legislatures. They are committed to protecting the careers of its members as well as their clients interests. They lobby to prevent and change unfavorable regulation and legislation.
NAIFTA also runs one of the largest political action committees (PACS) in the financial services industry. This PAC is known as the Insurance and Financial Advisors Political Action Committee (IFAPAC).
Membership Requirements for NAIFA
In order to be a member of NAIFA, you have to keep up to their Code of Ethics. As stated on their website, the rules are as follows:
- To help maintain my clientsā confidences and protect their right to privacy.
- To work diligently to satisfy the needs of my clients by acting in their best interest.
- To present, accurately and honestly, all facts essential to my clientsā financial decisions.
- To render timely and proper service to my clients and ultimately their beneficiaries.
- To continually enhance professionalism by developing my skills and increasing my knowledge through education.
- To obey the letter and spirit of all laws and regulations which govern my profession.
- To conduct all business dealings in a manner which would reflect favorably on NAIFA and my profession.
- To cooperate with others whose services best promote the interests of my clients.
- To protect the financial interests of my clients, their financial products, and my profession, through political advocacy.
Summary
NAIFA is one of the top trade groups in the insurance and financial industries. It helps to promote life insurance and other risk mitigation practices. It also ensures professional and ethical conduct among financial advisors and insurance representatives while giving ample opportunity for professional development courses and development of skills.
FAQs on NAIFA
The membership costs for NAIFA depends on your length of being a professional or a producer. For example, the student membership costs $50/year while it costs $500/year for an industry professional..
NAIFA has more than 50,000 members and is the largest financial services membership association in the United States.
NAIFA was founded on June 19th 1890.. They were originally known as NALU but changed their name to NAIFA in 1999.
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