The Daily Oklahoman from Oklahoma City, Oklahoma • 37

THE SUNDAY OKLAHOMAN Section October 11, 1981 'Universal Life' Policy Seen as Savior of Insurance Industry traumatic." "Thf big mutuftJ fear they might balize' their own po folios by reRlfic high-margin whohMi with iess-pro: universal life. Help Warstet Ads Decline the hands of the insurance managers and leiK the economic conditions determine when and by how much the yields will fluctuate. These new policies are like an interest-bearing cash fund. You put your money in and the conmpany manages it. They take a management fee and put the remainder to work at the going rate, in case of Great Southern's Lifetime Life policy, 11 percent a year." Forbes Magazine in July, in an assessment of the universal life development, said thai if it "really gets rolline, its effect on the insurance industry could be kinds of higher-yielding instruments.

Term insurance that people buy for death and accident coverage only has grown in popularity. A year ago. Fortune reported that the whole-life industry was looking for new ways to get and reward savers "with a clearly stated rate of interest and periodically extract money from the account to pay for the term insurance that is part of the package." Withdrawals are taxed only when policyholders withdraw more than their original con: tribution to the account. Fortune predicted: "The industry as a Great Southern, Life Insurance Co. of Virgina, Transameriea Assurance Occidental Life of North Carolina and First Penn-Pacific Life Insurance Co.

were early entries following Mutton's lead. Insurance analysts and even old-line company executives see the universal life package as a potential savior of the moribund whole-life insurance industry, whose small returns on investments have prompted policyholders to take their business elsewhere to the money market mutual funds that have doubled in size this year to more than S1G0 billion outstanding in investments, and other business began to grown rapidly only after the Internal Revenue Service issued an opinion establishing the program as life insurance and, thus, death benefits are tax free. Since the January and February ruling and clarification, says Rick T. Jurens, insurance coordiator in Hut-ton's Oklahoma City office, his own firm and competing insurance companies have expanded universal life sales substantially. Great Southern Life Insurance Co.

in Houston says the universal life concept is "a revolution taking place in the trillion-dollar life insurance industry." Life insurance plans that are also vehicles for moderate-yielding investment are growing in popularity as insurance companies scramble (or ways to keep their, customers from the canny marketing schemes of financial and brokerage firms. The plans are called "'universal life" policies, a hybrid of whole life insurance with some savings features and term insurance that for a much lower premium pays only death benefits. The E.F. Hutton brokerage firm started universal life marketing in 1979, but the The Value Plan inflation hedge is the 8 percent a year cost-of-living benefit that is compounded through the year, increasing the amount of insurance. A Hutton table shows that a $100,000 policy would increase over 20 years to $199,902 after 10 years and to $131,57.1 when the 8 percent adjustment ends in the 20th year.

Largent Parks who heads a Dallas recruiting and counseling firm, described the universal life concept in a Great Southern Life Insurance Co. publication last month. "Hundreds of other companies are studying or developing it," he wrote. "Some policies have pegged their yield to the consumer price index or T-bill rates, which takes the matter of return out of The Conferen! Board's help-wattf advertising ind; dropped four points August, following wfiUirn earlier the summer. The ind ance program that will be handled by Jurens and other brokers as the marketing campaign grows.

"Earnings are tax deferred," he said. "Currently, we guarantee a return of 4 percent for the life of the contract." The various plans are similar, with some yields based on the firm's own earnings from investment of premiums, and others based on the interest rates paid on short-term treasury secu-rites. Hutton sells two plans Completolife and Value Plan. Complete-life policies put emphasis on flexibility features, such as adjustable benefit periods, benefit coverage, investment and withdrawal privileges. Jurens says it's a kind of "one-stop" financial service.

Completolife offers two options: A level death benefit and a face value plus cash value. whole will likely be hauled kicking' and screaming toward this kind of It will not win popularity contests with insurance agents, nor will it bring in low-cost savings on which insurers can make large investment profits. But it is a product that seems rooted in rationality and just might take off." Thompson Phillips, branch manager in the Oklahoma City Hutton office, said the classic universal life plan such as Hutton's "Completel-ife" permits policy owners to adjust their death-benefit needs as condition change, to increase or decrease coverage, invest heavily for a return that is now 1 1 y4 percent on the policy's cash value, and to be assured of an 8 percent annual inflation-hedge increase in the face value of the policy. He hired Jurens, who had experience with Mid-Continent Life Insurance Co. and Standard Life Insurance Co.

in Oklahoma City, to co-ordinate the insur hased on classified in 51 m. newspapers, lis. Til TAX FREE INTEREST 1: Effective annua- yl'Ai with quart crl pounding at 11-523Vs nominal rate Tan Free, up to $1,000 par oetaon; Bache per cauplc- One year ro l.cnto-SSO!) i Bach Hsly Stuart Shioldi Incorporated Don Wood 1500 Liberty Towar Oklahoma City, Okla. 73102 (405) 236-3041 HOME FEDERAL SAVINGS 3301 So. WeiUrn, Oklahoma City 73105 634-14 Stall Photo by Georoo R.

Wilson It's beginning to look at lot like Christmas at this Norman store. This Time, Holiday Store Staying Open lahoma. There are now several such stores in Oklahoma, including Holiday Originals at 4810 MacArthur, Rainbows Dreams in Nichols Hills Plaza antl 'Tis the Season in cWfthtftgdicgash cjhistccount, we're diggin' in our heels, and 'ullish" takes on a new meaning Our RcdiCash Trust Account makes previously "bullish" money market funds pull in their horns. Here's why. Instead of fluctuating daily rates, First Oklahoma Trust offers a rate that matches the 13 week U.S.

Treasury Bill rate. This way you're always sure of what your rate will be. To qualify, you need only be an Oklahoma resident and make a minimum deposit of $5,000. (You may add to your account in $1,000 increments.) But high rates are only part of the story. With a RediCash Trust Account you can redeem your funds in amounts of $500 or more.

Plus, as an added bonus, you have the assurance that the funds you entrust to us will be invested in our market area. So your money is doing double duty. So look to First Oklahoma Trust Company for the best offer around. And, as far as those so-called "bullish" funds are concerned, your portfolio would be better served if they were put out to pasture. p.m., and lunch from 11 to 1:30.

while the store will be open from 10 a.m. to 5 p.m., Mondays through Saturdays, antl until 6 p.m., on OU home-football-game days. Mrs. Billingham formerly was pastry chef for Legends restaurant in Norman, instructed at Creative Cookery in Oklahoma City and operated a catering service. Kitchen Expressions will also offer catering and carry-out service.

Mrs. Couch believes her holiday-gift-oriented store was the first to open in the central Ok- name. Mrs. Couch said the store handles craft and gift items made by about 200 persons in the greater Oklahoma City area, "plus some things from people who have moved to other states," and many commercial items. The sales mix is about 60 percent handcrafted, 40 percent from commercial markets, she said.

She has five artists on her staff to personalize gifts. Linda Billingham will operate the tearoom. Kitchen Expressions, which will open Nov. 2 and will seat 30 to 35. The menu will change daily, Mrs.

billingham said, and will include soup, quiche or omelettes, a feature entree and desserts. NORMAN Christmas Expressions, a store specializing in holiday gifts and personalized items, opened for its third season last week but with some distinctive changes: This time the store won't be closing the day after Christmas as it did the past two years. It's in a new location, a now building at 2214 Lindsey. just east of Interstate 35 in Norman. And a tearoom will open in the store within a few days.

Owner Donna Couch said the store will remain open throughout the year, offering items related to all major holidays, plus other gift items. Although the store will now be a year-round business, Mrs. Couch says it will continue to have the Christmas Expressions DRILLING SALT LARGE VARIETY INVENTORY FOR ALL PHASES OF OIL WELL DRILLING SERVICING AND WORK-OVER. CALL TODAY FOR ALL YOUR SALT NEEDS champioimL PROBLEMS WITH HAZARDOUS WASTES Call lor Analyses. RCRA festinj Waste Disposal Solutions The tearoom will TECHRAD OKLA.

CITY. OKLA. serve pastcries and cof- I 4619 N. Santa fe OKC 73118 I Arc 111 rAQ a I fee from 10 a.m. to 3 I 40bb28 7016 I 405272-0481 mt ULAbolu in urriot -w CLASSIC LEATHER AT 20-50 JIFF..