Insurance News
Memo from Roy Spurlock: Council's Insurance Agent
THE CRASH OF '08
Pretty scary headline isn't it. Whether it gets printed in the news media this year or next is something that is on everyone's mind. Everybody knows the market has its ups and downs but right now there is a real and visceral fear that is sitting somewhere between the stomach and heart of every person who has significant money invested in stocks. Some people are calling it a correction. Some call it election year jitters. Most just keep a keen eye on the market and hope for the best.
In spite of the market jitters there are some rays of sunshine. Recently on CNBC to market investment specialists did the unthinkable. They recommended permanent life insurance as part of any investment portfolio. They cited the stability of life insurance, tax advantages and a solid return on investment as a few of the reasons today's investors should consider permanent life insurance. Needless to say, the CNBC host was left almost speechless.
Neither the host nor the viewers should have been that surprised by what the two investment specialists said. The truth is, permanent life insurance is one of the most misunderstood products available to the public. I can't tell you how many times I have heard talk show guru's and brokers say forget the whole life. "By term insurance and invest the rest." Fact is, if many of the people I talked to had invested a significant portion of their investment capital in whole life insurance, they would have fared much better after 9/11. The Knights of Columbus was doing business during the crash in 2001, as it has been for 125 years, and none of our members lost a penny. To the contrary, we continued to pay the nation's highest rate of insurance dividends to our policyholders.
What the investment specialists didn't say during the interview was there is one life insurance provider that year after year provides the best in permanent life insurance…The Knights of Columbus.
If you would like to see a video of the interview, the web site is www.cnbc.com/id/15840232?video=697206891
Roy Spurlock
Field Agent
Knights of Columbus
843-379-9319
A Port In A Storm
Forget Sir Edmund Hillary, the first man to climb Mt. Everest. Forget Henry Hudson who ventured into the unknown looking for a northwest passage. Forget Lewis and Clark whose exploits every school child knows. If you want to see real courage, watch a guy check the Dow Jones average in today's turbulent market. With oil hitting $115 a barrel and the real estate market in the tank, investors are looking for relief from the huge market swings that seem to happen every week. Our political leaders are too busy blaming each other to address issues and I'm not sure if the $600 in "economic stimulus" is enough to restart the housing market. I guess it's up to us to save ourselves. Anybody got a lifeboat? Actually, there is a port in the storm. Every time I do a benefits night I talk about what it means to have the highest rated insurance company in the world. Usually that announcement brings a few yawns that let me know I am beginning to lose the attention of our members. Not today. Why, because what being the top rated insurance company in the world really means is STABILITY. Fourteen billion dollars in assets means that fluctuations in the economy, the market and the world have little or no impact on the performance of our products and the dividends we pay. And all of a sudden, the idea of having our life savings in a K of C IRA, SEP, etc. begins to sound very attractive. Let's be honest. We would all love to stay the course and let the market rebound, restoring the thousands of dollars we have seen evaporate in recent months. The question is, has the market bottomed and more important, can we afford the time it will take to regain lost investment? I pulled up a ten year chart of the Dow yesterday and it's not particularly encouraging. The market today is hovering around pre-9-11 levels after seven years of slow recovery. For many of us, another significant drop could permanently damage our retirement plans. The Knights of Columbus can provide stability and a solid return for your life savings. We have no charges, fees or fund administration deductions. What we do have is peace of mind and a port in the storm. Roy Spurlock Field Agent Knights of Columbus 843-379-9319
Field Agent Housekeeping
There have been quite a few important, although not earth shattering, events over the past month. This should bring you up to date.
First - A new field agent has been added to the Boni Agency bringing our total number of Field Agents to an all time high of seven. We are within one agent of having full coverage for the state. The new field agent is former District Deputy Steve Kramp. Steve will be serving the Charleston area Including two of my "former" councils in Walterboro and Mt. Pleasant. Steve is going to be a great field agent and credit to the agency.
Second- I have added two new councils to my territory and will now serve Aiken and N. Augusta. I attended meetings for both councils last week as the "assigned" field agent for the first time and was impressed by the enthusiasm displayed by both councils. There is a lot of ground to catch up as neither of these councils has been assigned an experienced agent for years, but, with the support of the members, it can be accomplished.
Third - Product changes have been made in two important areas. Long Term Care coverage has been extended to members and spouses who have attained 30 years in age Formerly, coverage could not be written before the age 40. Also, there is a new product being offered in the form of a rider on permanent policies. The rider attaches a single premium paid up addition that immediately provides growth in cash value and death benefit. Perhaps the best part is the immediate accessibility as a policy loan without tax liability. Since dividends increase the cash value of the policy at a rate of over 4.5% on average, it represents a significant opportunity as a tax sheltered savings plan without the penalties, fees, charges and taxes associated with traditional forms of investments. There is also no age factor with the IRS penalizing you for withdrawals under 59 ½ or mandatory withdrawals over 70 ½. With the instability of the market on everyone's mind, this product is far superior to money market accounts and CD's.
Last - I want to personally thank all of you who sent cards, donations and provided support to me and my family after the loss of my mother last month. I will always be greatful.
Roy Spurlock
Field Agent – Knights of Columbus
843-379-9319