Our own Eugene Anderson presented the message for the day: “How to Intelligently Buy Life Insurance of the Highest Quality and Make a Profit While Doing So.”


Eugene provided handouts and reviewed the types of insurance organizations and the pros and cons of each: Non-profit “fraternal” insurance organizations, mutuals, stock companies, non-par companies, and term Insurance. If you want to be able to make your life insurance work for you, purchase your policy from a fraternal or mutual organization. These two types of organizations provide tax shelters and policy dividends. It is also important to check the rating of the company. If you purchase from a top-rated firm, you can be sure that they will be there when you need them!


There are also several types of policies. Term life insurance is the least desirable. These policies are priced to be affordable the first year, but the premium climbs each following year, while the benefit stays level.


Whole life insurance offers level premiums and builds equity. A good whole life policy can have cash value equal to many times more than the premium paid. The profit is also non-taxable.


With universal life, all cash value is invested in mostly short term instruments like money markets and CDs. This works well when the interest rates are high, but right now rates are low and these policies are in trouble.


Variable universal life has the cash value invested in mutual funds, which means that the cash value will vary from day to day in accordance with the market. If you happen to like the stock market, this makes it possible to have tax exempt mutual funds inside your life insurance.


Investing wisely in the right kinds of life insurance makes it possible for you to nurture tax free profits that you can enjoy while you are still alive.