Letter to the Editor
In response to the Washington Post article: "Investment Pitches Prey On Elderly"
Contact
Lee Allen
Vice President of Communications and Marketing
703-770-8112
To the Editor:
The allegations described in "Investment Pitches Prey on Elderly" (September 5) are of great concern to the National Association of Insurance and Financial Advisors (NAIFA), a nonprofit organization representing insurance and financial professionals nationwide.
NAIFA members adhere to a strict code of ethics and strongly oppose the inappropriate sale of financial products. We believe that full and easy to understand disclosure of all the pertinent facts about insurance and financial products, including annuities, is in the public’s best interest.
When used properly, both deferred and immediate annuities can play a vital and valid role in sound financial and retirement planning. As defined benefit pension plans disappear from the reach of average Americans, annuities are the only financial product that can guarantee a retiree a stream of income that cannot be outlived.
The situations described in the September 5 article have the potential to give a bad name to the overwhelming majority of advisors, who are both ethical and professional. It is crucial, therefore, to ensure that appropriate consumer safeguards are in place to prevent annuity purchasers from being misled.
NAIFA is working with other insurance groups to create an industry-wide task force to develop and recommend a meaningful response to concerns regarding the proliferation of advisor designations. We believe that the industry, working together, can develop an approach that will benefit consumers, insurers, advisors and regulators.
Sincerely,
John A. Davidson, LUTCF, FSS
President
- Read the article: http://www.washingtonpost.com/wp-dyn/content/article/2007/09/04/AR2007090402281.html