Silicon Valley Bank’s collapse in early March was a wake-up call for people across the country that sudden financial instability could drive an already shaky economy into a full-on recession. Many of us know better than to trust the White House when it says the economy is on solid footing, but we still want to ensure our families are financially secure, no matter what happens next. This is why life insurance is a central part of millions of people's financial security and retirement planning. It offers a lifeline and a critical safety net following the death of a loved one. But now, the Biden administration has singled this vital tool out in a new politically motivated attack, putting financial security at even greater risk for people across the country.

Annuities offered by life insurance companies allow people to support themselves and their families when disaster strikes. These policies allow retirees to remain independent and provide peace of mind to families who can’t afford to lose a primary earner. Without life insurance, families with children would be out of options after losing a parent. These policies allow grieving parents to pay their bills, put food on the table, and pay rent or mortgages so families can stay in place following a tragic loss.

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In fact, data show that nearly 70% of people with life insurance plans feel financially secure, while fewer than half of those without life insurance feel the same. After the death of a primary wage earner, nearly half (44%) say they would feel the financial burden within six months.

Despite the enormous benefits and security provided by such plans, the Biden Treasury Department is now putting heavy pressure on the National Association of Insurance Commissioners to adopt penalties on life insurance plans backed by private investments. These new rules would make it harder for retirees and families to support themselves if enacted.

Europe has already tried similar penalties on life and annuity products, and, by discouraging companies from investing in these assets, it led to a decrease of those products on the market. Is this really an example that the U.S. federal government should want to follow?

The public needs more options, not fewer, and more options mean lower costs and more competition. The plans targeted by the Biden administration have driven down consumer costs and allowed insurance companies to offer a greater variety of products and offerings. Penalties would drive up prices and take away options for people planning for the future, making it harder for retirees and families to support themselves — especially in times of need.

Moreover, the NAIC is in no position to dictate this rulemaking. NAIC is merely a nonprofit association of state insurance regulators; it doesn’t have the power to establish common standards across state lines. This authority currently rests within the purview of the state commissioners and state officials themselves and should remain within their hands, not those of unelected bureaucrats. The Biden administration is exploiting this abuse of power to further its own anti-private investment economic agenda, and it will ultimately hurt policyholders, particularly seniors and people who have experienced tragic losses.

The public is increasingly looking for more security, peace of mind, and financial stability. The Biden administration’s actions only threaten to put all those things out of reach. The White House must pull the plug on this death knell for the plans that thousands of the most vulnerable among us will soon depend on to make ends meet.

Saul Anuzis is president of the 60 Plus Association.