In a life insurance policy, you can borrow against it, income tax-free, and then it can get passed on to the next generation income tax-free when you pass away. However, many provisions in these policies are on the chopping block. Most of these provisions expire between 2025 and 2027 if no action is taken.
A major consequence of the upcoming election will be the direction of federal tax cuts. The Republican nominee has pledged to not only extend these cuts but also make additional ones, potentially offering more tax savings. On the other hand, the Democratic side may let some provisions expire.
"How am I not hearing about this from every single person, including insurance companies?"
Kevin Mayeux, President and CEO of NAIFA, joined us to discuss the current political climate and its impact on the life insurance industry. NAIFA is a key organization in the insurance space, and their work is crucial in ensuring financial products remain beneficial for Americans.
NAIFA, founded in 1890, is the oldest and largest professional association in the financial services space. Their mission is to ensure every American has access to the right insurance and financial products for financial security. They have a presence in all 50 states, engaging with law-makers to advocate for beneficial regulations.
With the election and political dynamics rapidly shifting, the landscape for insurance and financial services legislation could change dramatically. A divided government could lead to gridlock or the need for increased compromise.
Kevin emphasizes the importance of involvement in NAIFA, encouraging financial professionals to unite and advocate for the industry. With strength in numbers, professionals can have a greater impact on shaping public policy.
Kevin highlights the ongoing discussions in Washington, pointing out states where progressive movements on taxation have occurred. These actions could signal potential changes at the national level.
If you're a financial professional, it's crucial to stay informed and engaged. NAIFA's bipartisan efforts ensure that all interests in the financial security space are represented and addressed.
The upcoming months are significant for life insurance and financial security professionals. Your involvement in advocacy through organizations like NAIFA can make a meaningful difference in how these changes unfold.