National Association of Insurance and Financial Advisors (NAIFA)

It is one of the largest trade groups for the financial industry.

Patrick Curtis

Reviewed by

Patrick Curtis

Expertise: Private Equity | Investment Banking


October 7, 2022

The National Association Of Insurance And Financial Advisors, also called NAIFA, was founded in 1890 and established as the National Association of Life Underwriting (NALU).

It is one of the largest and oldest organizations in the insurance and financial field. It has 100 years of leadership in the financial services industry, which it celebrated with the slogan: "Voices from the field."

It is an organization for insurance professionals and financial advisors based in Virginia, near Washington, DC. It is one of the largest trade groups in the financial industry.

It is also a coalition of 700 state and local associations with more than 50,000 members. The membership fees are $565 per year, which include local, state, and national dues.

This organization devotes itself to creating a favorable regulatory environment for insurance and financial advisors. In addition, they offer professional educational and financial services and professionally keep their ethics and integrity.

It represents insurance professionals in all 50 states in the United States and has at least one local chapter in each state and the District of Columbia.

This organization provides its members with networking facilities, sales training, and other applicable tools, which assist them in succeeding in their practices in relative areas.

Additionally, this organization lobbies Capitol Hill for legislation favorable to the insurance and financial advisory industries.

The members provide clients with life and annuity insurance, health insurance and employee benefits, multi-line insurance products, and financial advice. They are also accessible to insurance agents, financial advisors, multi-line agents, health insurance, and employee benefits.

Educational services are available to its members, which include different types of programs, such as career development and continuing education programs.

This organization also offers more than 50 professional programs and products designed to enhance members' skills and provide value-added business services to professionals.

NAIFA's History

NAIFA was founded in Boston on June 18, 1890, as the "National Association of Life Insurance Underwriting" (NALU), when it was not the organization we know nowadays.

In 1928, NALU moved its general headquarters to New York City and finally to Washington, DC, in 1956.

In 1951, NALU formed the General Agents and Managers Association (GAMA) to improve the quality and competence of field management in the insurance industry.

This association has worked to improve Americans' quality of life and address social problems since it began developing community service programs in 1956.

In 1957, NALU established the Advanced Association of Life Insurance Underwriting (AALU), supporting senior life underwriters and agents working in the complex areas of life insurance.

This includes business continuation, options, retirement, deferred compensation, and employee benefit planning. In 1990, the third NALU Conference was formed by NALU, which is the Association of Health Insurance Agents (AHIA).

It was founded to maintain and improve the business environment for health insurance agents and the financing and transferability of healthcare in the United States.

On September 29, 1999, NALU voted to change the association's name from "National Association of Life Insurance Underwriters" to "National Association of Insurance and Financial Advisors," which is the organization now.

Its local associations currently volunteer in social programs such as health care, homelessness, youth education, AIDS awareness, drug and alcohol awareness, family, senior citizens, and American crisis relief efforts.

Its public service programs were honored six times by the Reagan and Bush Administrations' Private Initiatives Program between 1981 and 1989.

In May 2000, this organization moved into its new general headquarters in Falls Church, Virginia, after 40 years at 1922 F Street, Washington DC, where its public office was situated for more than ten years.

NAIFA's Mission

The National Association Of Insurance And Financial Advisors is one of the top associations for producers of financial services.

It works on behalf of its members to promote a favorable financial environment. In addition, it provides professional education services and ensures professional, ethical conduct, which is intended for insurance and financial advisors. NAIFA is supported by many large insurance and finance cooperations, which encourage their employees to join local NAIFA organizations. 

Some leading companies support their membership by paying dues and facilitating employee payments. One of this program's goals is to promote life insurance and other risk-reduction practices as the centerpiece of a solid financial plan

Most importantly, they ensure the professional and ethical conduct of all insurance representatives and financial advisors. The Insurance Agency's Vision plan is to "safeguard and promote the important role of insurance in sound financial planning and the important role offered by professional agents and advisors."

The mission of the National Association of Insurance and Financial Advisers is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote ethical conduct among its members.

It does this by lobbying the government, advocating for its members, and providing members with various benefits and resources.

The National Association of Insurance and Financial Advisors maintains and promotes insurance's vital role in a sound financial plan and our professional agents and advisors.

They trust the importance of interactive communication and service, which benefits members and their clients. In that way, the members offer professional services and also gain realization of their career goals.

They keep trying to build a closer relationship with each other and a better community in the financial services industry with the same purpose and devotion.

About NAIFA Members

NAIFA members are consultants who focus on customer service. Their satisfaction comes from mentoring families seeking financial wellness.

Their advisors are not new to their efforts to improve and give back to their local communities and call themselves "Main Street America." Consultants in this organization are close to consumers. Their community spans all 50 states and the United States, and members work various jobs.

Membership comprises a diverse group of advisers who seek to network with like-minded people to advance their professional development and increase their professionalism in practice, communication, and community involvement. 

There are fundamental ethical requirements for becoming a NAIFA member:

  1. Values personal leadership and has held leadership roles in school, sports, and the community;
  2. Approve American values on life, liberty, and people's expectation for happiness pursuing;
  3. Know the value of the democratic process and have a higher understanding of the right and power of individuals to express their voice and vote;
  4. Whether they are committed and determined to create the best unique solution for each customer;
  5. A passionate pursuit of personal and professional excellence.

The members should:

  1. Help maintain clients' confidence and protect their privacy rights.
  2. Work hard to meet my client's needs and act in their best interests.
  3. Accurately and honestly state all facts critical to my client's financial decisions.
  4. Provide timely and appropriate service to my clients as well as their beneficiaries.
  5. Continuously improve my skills and knowledge through education to constantly improve my professionalism.
  6. Comply with the letter and spirit of all laws and regulations governing the profession.
  7. Conduct business dealings in a way that benefits their organization and my profession.
  8. Work with others whose services best advance the interests of my clients.
  9. Finally, protect my client's financial interests, their financial products, and my job through political advocacy.

Their members work in a wide variety of professions, including:

  1. Insurance agents/Advisors (captive and independent)
  2. Financial advisors and financial planners
  3. Investment advisory firms
  4. Brokers/dealers
  5. Multi-line agents
  6. Health insurance and employee
  7. Benefits specialists
  8. Owners of institutions
  9. Employees of transportation companies
  10.  Independent marketing agencies
  11.  Translators

Duties of NAIFA Members

NAIFA members have the following duties.

  1. Educate consumers
    The members work one-on-one daily with consumers to educate them about budgeting, savings, and investment options, among other things.
  2. Engage in community service work
    The members devote their enthusiasm to community service work by providing financial literacy classes. They also offer extra volunteer time to improve the knowledge and understanding of the financial security of community organizations.
  3. Create a caring community
    The members pursue creating a community where they care about others' demands and growing processes, which contributes to interactive improvement to a great extent.
  4. Always help each other
    The members are always willing to offer help. Study groups, steering groups, and accountability groups are formed regularly within this organization. All kinds of assistance are aimed at helping people to be the best counselors they can be.
  5. Provide peer-to-peer education
    The members speak and write regularly about their professional affiliations for the benefit of the larger group.
    Whether at the local or state chapter level or for their nation's benefit through webinars or Apex, members want to participate and provide peer education.
  6. Put their clients' interests first
    The members are listed on the consumer website and promotions. Consumers know that working with the members means working with professionals who adhere to the highest standards in the industry.
  7. They are the financial security solution for Americans
    While the members' clients cover the total income and assets, most are average Americans. 
    They can be teachers, doctors, police officers, owners of some small businesses, or others who make up the backbone of our communities.

Nearly half of their members provide the information that their clients' "typical household income" is between $50,000 and $100,000 per year.

Thirty-four percent of the members said their clients typically make between $100,000 and $150,000 yearly. At the same time, 4 percent of the members expressed that their clients usually have a yearly income of less than $50,000.

The members provide products, services, and guidance that improve financial literacy in our society and protect their clients from the risks inherent in life.

They help Schinler working Americans to get prepared for retirement, as well as create financial security and prosperity. Enabling their clients to leave wealth for future generations is also important to them.

They also provide services for individuals, families, as well as all kinds of businesses. As a result, their service score has been expanded throughout the United States. 

Long-term relationships are of great significance for the members since most are average Americans living and working in the same communities as their clients.

Resources Offered by NAIFA

Products and services offered by the members to address America's financial security needs:

  1. Life insurance, annuity products, retirement plans, and products;
  2. Long-term and extended care solutions, mutual funds, and investments;
  3. Individual and group health insurance, disability insurance income, property insurance;
  4. Workplace benefits, educational aid plans, Financial literacy education.

NAIFA is the insurance industry's primary lobbying group in Washington, DC. It is dedicated to protecting the careers of its members as well as the interests of its clients from adverse legislation and regulation in state legislatures.

It also operates IFAPAC, one of the financial services industry's largest political action committees. Membership in IFAPAC gives you access to the latest industry ideas and top practitioners and a free subscription to an advisor.

At present, the official publication of this organization provides sales ideas and industry news resources for insurance and financial advisors.

In addition, it hosts several centers that can provide resources to members. These include:

  1. Advanced Practice Center
    Provides thought leadership on advanced market topics and concepts.
  2. Advocacy Action Center
    It provides tools to connect with state and federal legislators on various issues and learn more about house and senate bills that their government relations division monitors.
  3. Business Presentation Center
    Offers articles, webinars, conferences, and more practice and extended care planning centers to help financial entrepreneurs grow. In addition, they empower professionals to network with solutions and service providers.
    They also share best practices and have direct access to subject matter experts, research, training, and resources.
  4. Talent Development Center
    Provides materials that can be used to develop the next generation of financial professionals and ensure that advisors reflect the diversity and inclusion of their clients.
  5. Learning Center
    Access online and in-person test preparation, continuing education, and professional development courses.  

Key takeaways

  • NAIFA is a professional organization with a long history and excellent business scale across the United States, which can be declared as the "Brand Effect" application.
  • They have a clear mission and purpose for their service and have stuck to it throughout their development since this organization was founded in 1890.
  • They have a high understanding of the relationship between themselves and their clients, which helps them maintain their business to a great extent.
  • They own a mature management structure as well as solid team spirit. In addition, the members of this organization all have positive values for themselves and others, which contributes to a promising team.
  • They have strong power and try to be energetic for their mission, which makes them able to spend extra time helping each other benefit themselves.
  • They have been doing an excellent job in making their service diversified and applicable, which is also a key point for maintaining long-term relationships with their clients.
  • They keep expanding the services and resources they can offer to their members and clients. But, it is never enough for them to keep going.
  • As finance is gaining greater importance nowadays, more and more people need to learn how to use their fortune fully. Therefore, making a smart decision about your money use becomes fundamental.
  • Some day in the future, we may also need assistance from these professional organizations. Still, it is also essential for us to prepare for financial issues in our daily life.
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