[net.consumers] A. L. Williams - Proceed with Caution

stanwyck@ihuxr.UUCP (Don Stanwyck) (03/21/84)

I also have a church friend who became an A.L.Williams salesman, and I 
spent a fair amount of time wiht him discussing it.  I didn't buy.  Here
is what they have to offer.

A.L.Williams (ALW) is a company that manages investments.  What it sells, or
trys to sell, is itself as a management service for your money.  Since most
of the people they talk to have no money to invest, they sell you a way to
have that money.

ALW points out that if you drop your whole life insurance for term insurence
(which they will sell you) you will have some extra available funds.  So you
give these extra funds to ALW for investment.  Since the term insurance is
decreasing term, and you are building up your investment with ALW, you will
eventually be self-insured.  Makes sense, right?  However.  What they don't
tell you is that you can get better investments, that you can get cheaper
insurance, etc.

The other problem with ALW is that the salesman makes all his/her commission
the first year.  So typical payments to them run ~$80.00/month the first year,
and ~$35.00/month thereafter.  Should you ever change your mind, there are
some potential problems involved in getting out of your contract.  They do
make you sign a contract which guarentees the salesman the commission, or at
least when I was talking to them they did.  Finally, if you ever drop out of
the program for even a short time (i.e. you fail to make two consecutive
payments) and later want back in, you have to pay another commission. Also
your funds invested with them are tied up for a period of time, and penaltys
can occur for trying to get access to your own money.  (This is not just ALW,
this is typical of IRA's, term-certificates, etc.)  

I am not saying that what they are offering is bad - just be very sure that
it is what you want for your investment future.

<<NOTE>>  The concept of getting rid of your whole-life and replacing it
	  with term+investment is in line with a Consumer Reports suggestion
	  of about 1-2 years ago.  They noted that whole life is probably
	  the worst investment most people ever make.
-- 
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 (      )					Don Stanwyck
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