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As a life insurance professional based in New Jersey, I’ve dedicated my career to helping families plan for the future, protect their loved ones and achieve financial security. Every day, I sit across kitchen tables, meet in offices or connect virtually to ensure that my clients have the tools they need to safeguard their financial futures. But a recent proposal by the New Jersey Department of Labor & Workforce Development threatens to undermine my ability to provide these essential services effectively.

The proposal in question seeks to reclassify insurance agents as employees instead of maintaining their current status as independent contractors. On the surface, this move may seem like a step toward increased worker protections. But for financial professionals like me and the families I serve, it could have far-reaching, unintended consequences.

As I said in my June 23 testimony to the NJDOL, licensed insurance and financial professionals are highly regulated independent contractors who operate with autonomy, often representing multiple insurers. We pay our own business expenses and are responsible for maintaining compliance with strict state and federal laws.

We are not employees — we are entrepreneurs. This independence allows us to tailor guidance to our clients’ unique needs. Each family’s situation is different, and having the flexibility to draw from a wide range of options is critical to making recommendations that best fit my clients’ individual needs. Reclassifying us as employees would restrict this independence, limiting consumer choice.

New Jersey families rely on us for access to a variety of financial protection solutions, including life insurance and annuities. These products are not just numbers on a policy; they are lifelines in times of crisis. Life insurers in New Jersey pay out roughly $8.5 billion annually in life insurance and annuity benefits. This financial safety net plays a vital role in helping families rebuild after the loss of a loved one or plan for a more secure retirement. Limiting the flexibility of insurance agents risks eroding this safety net by narrowing the options available to families.

After considering similar proposals, California and Delaware recognized the unique nature of the insurance industry and made accommodations to preserve the independent contractor status of insurance agents. New Jersey should follow their lead and amend this proposal to reflect the distinctive needs of our profession. Doing so would ensure that families continue to have unfettered access to the financial protection they deserve.

For me, this issue is personal. My clients are not just numbers on a spreadsheet; they are my neighbors, my friends, and my community. They trust me to provide them with the best guidance and options available. If this proposal moves forward as it stands, it will limit my ability to fulfill this responsibility, and by extension, it will limit their ability to protect their families and plan for the future.

I urge our state officials to consider the real-world impacts of this proposal. The families of New Jersey deserve access to independent financial professionals who can offer the greatest possible access to the broadest range of product options. They deserve financial security, and this proposal puts that at risk.

Let’s preserve the independence of New Jersey’s financial professionals. It’s a matter of protecting not just our livelihoods but the financial well-being of the families and communities we serve.

Dennis Cuccinelli, a licensed insurance agent based in Paramus, is a trustee of the National Association of Insurance and Financial Advisors and member of NAIFA -New Jersey.