To The Editor:
The June 28 letter of Robert B. Shearer, CLU, ChFC, criticizing Jack Bobo, Bill Gates Sr. and Chuck Collins (the last two, authors of "Wealth & Our Commonwealth") was so utterly wrong as to beg for rebuttal.
Such bigoted assertions are a disservice to our profession as well as to the fine gentlemen he attacks. To wit:
Point#1: Jack Bobo says, "we should all enjoy paying confiscatory taxes." None of these three men ever claim anything of the sort. Most adults recognize that we live in a community and must deal with many collective responsibilities. That takes money. " Confiscatory" is in the eye of the beholder, such as the IPO price of Enron stock.
Point #2: "Taxes paid to the federal government disappear." What? How? Where does it go? Did Texas eliminate from the ChFC course the Economics & Fundamentals of Investing sections? Do I even need to elaborate here? Refer to Enron in #1 if you want to know how money disappears.
Point #3: Bill Gates Sr. "never created anything." Mr. Gates was already a successful attorney and highly esteemed community servant, in his own right. He co-chairs the Bill & Melinda Gates Foundation. Do you think maybe he had a hand in his sons business success and the foundations formation as well?
Point #4: Chuck Collins is a "government bureaucrat on the dole." The truth is he is co-founder and program director of Boston-based United for a Fair Economy and Responsible Wealth, which is an independent nonpartisan 501(c)(3) nonprofit.
Mr. Shearer, I suggest you read Gates & Collins book before critiquing it and those of us who agree with it.
Gary Duell, ChFC, MBA
Happy Valley, Ore.
To The Editor:
I want to reply to the letters regarding the Return of Premium Rider by Michael Kitces in the Aug. 18 issue.
I have been in this business since 1975. I have written many term insurance policies since then and believe about 97% of them (that have not converted to UL) that have not hit their renewal stage are still in-force.
I know that when those policies come up for renewal those people are going to be faced with a very difficult situation and that is they are going to have to change their plans! They are going to have to either pay that increased premium or else completely redo their policies in that each situation has its own need.
Now, not having sold or even marketed any ROP policies, my clients have no bucket of money to work with coming their way. They only have about two options. If the policy is not convertible, then the insurance company makes out like a bandit, and they simply drop it and go it alone with no coverage because its too expensive to continue.
I guarantee you that if the policy does mature with a death claim that widow/er is not going to ask where are those extra premiums I paid in all those years. No, they will simply be glad to get that income tax-free death benefit! However, if the policyowner lives, then he/she makes out well because there is that pot of money that is guaranteed to come back to them. Which would you rather have? No options and a ferocious premium renewal staring you in the face or a nice large check there to assist you in getting that new policy, which, by the way, can purchase a discounted new term or UL policy with premiums paid in advance for many future years! I think it would be a great sales idea! Not to mention persistency. People like things to look forward to that they can be proud of. A cheap premium has its costs, too, Mr. Kitces!
Lowell Nye, LUTCF/CSA
Reproduced from National Underwriter Life & Health/Financial Services Edition, September 1, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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