Financial Recovery: Appendix I, page i

Ninety-seven percent of Americans are being GREATLY OVERCHARGED because companies and salemen KEEP FROM THE PUBLIC THE TRUTH about life insurance prices and commission.¹

Because there is little or no meaningful and communicated price competition the high expenses of the life insurance industry, virtually all borne by the consumer, are A NATIONAL DISGRACE.²

For almost seventy years, the life insurance industry has been a smug sacred cow feeding the public A STEADY LINE OF SACRED BULL.³

CASH VALUE POLICIES, which represented 72% of the $731 billion of ordinary life insurance in force in 1970 ARE A CONSUMER FRAUD, not because they are inherently valueless, but because purchasers are DENIED systematic and useful information about alternative plans available.⁴

The life insurance industry HAS CREATED two EXTERMELY MISLEADING CONCEPTS WHICH THE PUBLIC HAS SWALLOWED IN THEIR ENTIRETY -- (one) that the cash surrender values are synonymous with 'savings accounts', and (two) that the owners of cash surrender type life insurance earn compound interest on this FICTITIOUS 'SAVINGS ACCOUNT' while it is in the possession of the company. Both concepts combine to DECEIVE THE POLICYHOLDER as to the true price he pays for his life insurance.⁵

1. J.E. Pawlick, Attorney, Professsor Pennsylvania State University, "How to avoid being overcharged by your life insurance salesman".
2. Ralph Nader, Testimony before U.S. Senate Subcommittee on Antitrust and Monopoly, 1973.
3. IBID
4. IBID
5. G. Scott Reynolds, "The Mortality Merchants", 1968.