Date:  4 Apr 84 13:04:21 EST
From: Rex Dwyer@CMU-CS-A
Subject: Re: life insurance?
To: David Lamb

David,
   Before you sink much money into life insurance, I'd recommend that you
read a book by Norman Dacey called "What's Wrong with Your Life Insurance."
I found it very useful, and I believe it could save you big bucks.

   If you reach the same conclusions that Dacey did -- that term insurance
plus savings program is better than whole-life insurance -- you might want 
to look into group term insurance from ACM.  The premiums are quite reasonable,
being for example 2/3 the premium of similar insurance offered to American
Express Card holders.  The catch is that you must maintain ACM membership,
of course.

   Another tip:  If you have an old whole-life policy and can't decide whether
to cash it in or keep paying the premium, you might want to look hard at the
policy's "loan" provisions.  I have a policy which allows me to borrow its
cash value at 5% interest.  I borrow the whole value then invest it in an
insured credit union account which pays 10%.  If I die, my wife gets the
face value minus the loan from the insurance company, and the loan value
plus interest from the bank.  If interest rates drop below 5%, I'll simply
pay back the loan.  I might have been smarter to have cashed in (I'm not 
sure) but I know this was smarter than letting the ins. co. use the cash
value for its own profi.

   Good Luck.  The line between being underinsured and insurance poor seems
to be rather fine.
				Rex Dwyer