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I remember holding a policy that
was tattered and yellow with age. The creases barely
held it together and the print style looked as though it
was handwritten personally for the insured. The face
amount was just a few hundred dollar's and the policy
number was about the same. It had been issued by a
fraternal organization that has long since merged into a
modern day life insurance company. I have never again
had the opportunity to review a life policy with
exclusions for death from Indian attack, or exclusions
for territories of the West not yet recognized for
statehood. It was like holding a piece of history in my
hands.
Although changes have been rapid in the past few years,
that old policy carried the same theme as today - the
promise of money at the death of the insured. Life
insurance was basically unchanged for about 150 years.
In 1951 the Emeloid decision issued by the U.S. Court of
appeals created a vast new market for life insurance. It
clearly established that the success or failure of a
business was more dependent on key personnel with
special skills than on buildings and equipment. It
concluded "A company has the right to protect itself
against the loss of a key person." This opened the flood
gates for life insurance entry into the business market
and created the concepts of split dollar, deferred
compensation, executive bonus, etc., as we know them
today.
About the same time, the payment of estate taxes created
a second gigantic market. The income tax free status of
the death benefit is particularly unique for solving
problems where death creates a need for large amounts of
cash.
Many agents do not realize that these marketing concepts
are barely fifty years old. I mention this to point out
the extraordinary ability of our business to adapt to
new markets. The computer age has thrust our marketing
skills and opportunities to horizons not even imaginable
a few year ago.
When I entered the business, there were certain features
that appealed to me. I believe they are still valid and
I would like to share them with you.
You have no restrictions on your market place. Almost
every person is a prospect and you have the privilege of
selecting your clientele. You can do this without a
major investment in plant, equipment warehousing or
inventory. You do not have an account receivable, which
can turn into a trap that mortgages your future. You
have no restriction by territorial boundaries. You have
no limitation for the delivery of your product due to
strikes or obsolescence. Competition from foreign
companies with cheap labor does not affect your
prospects buying decision as it does in auto, steel or
electronic industries. You have the freedom to work as
much or as little as your income needs require. You have
the opportunity to reach any goal you set for yourself.
You are representing the most amazing financial
institution ever created. Today you are riding a wave of
this industry, much more vital, creative and challenging
than it was when that old tattered policy was issued so
many years ago. The boundaries for your personal success
are unlimited.
-Frank Walliser
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