INSURANCE ARTICLE MISLEADING, WRONG

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, January 21, 1992                   TAG: 9201210345
SECTION: EDITORIAL                    PAGE: A-6   EDITION: METRO 
SOURCE: JOSEPH H. GWINN
DATELINE:                                 LENGTH: Medium
INSURANCE ARTICLE MISLEADING, WRONG
THE MEMBERSHIP of the Roanoke Chapter of the Society of Charter Life Underwriters and Charter Financial Consultants is becoming increasingly concerned about the advice/answers that have been appearing in the "Money Matters" articles of this newspaper regarding life insurance.
Some of these answers have been misleading, incomplete or totally incorrect. The members of our society are dedicated professionals who are sworn to uphold high ethical standards to promote educational excellence for our membership. We believe that our members do abide by the highest altruistic standards of professional conduct.
The recent article, "Comparing insurance," is both misleading and incomplete, not only as to State Farm Life, but life insurance in general. The theme clearly is that there has been poor investment with a meager 3 percent return. Regrettably, such a theme ignores the insurance protection that's been and continues to be provided.
When bought in 1962, $5,000 was a valuable death benefit. The same purchase also has provided additional insurance protection for a spouse and children.
All this continues to be available at a fixed and modest present annual outlay of $173. Actually, the outlay has been zero since 1985, because credited dividends have been more than enough to pay annual premiums and loan interest. For pure insurance protection, that's a pretty good deal. Even if viewed as an "investment," that's still a pretty good deal.
Furthermore, if we look solely at credited dividends and credited interest on those accumulated dividends over the past 29 years, there has been a fair "return." If given the number of the policy involved, we would be glad to do an individual analysis. For "comparing" within the industry, we suggest a review of the latest 20-year Dividend Comparison published by Best's.
To "compare" insurance, please present the complete picture, not just some disparaging "earning" rate. We think that an insurance professional should be consulted on these issues rather than someone who may have some other agenda.
Joseph H. Gwinn is president of the Roanoke Chapter CLU/ChFC in Vinton.

by Archana Subramaniam by CNB