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A Public Service Message from the American Income Life Insurance Co.Waco, TexasBernard Rapoport, Chairman of the Board and Chief Executive Officer in our torpid hours are tired words become the measure of decision: We, unhappily, are acting as if we had forgotten them. We seem to be ashamed to utter them, in part because we tremble at the gibes of the Philistines, but in the main because they are remote from our habitual feeling . . . We are trying to be too shrewd, too clever, too calculating when what the anxious and suffering peoples cry out to us for is that we practice the elemental virtues and adhere to the eternal verities. They alone can guide us through the complications of our days. The straight and righteous path is the surest. We strive to measure up to the standards that Mr. Lippmann set forth . . . knowing we can’t do it all the time, but striving with total commitment to come as close as we possibly can, not only with our actions but with products that we bring to market. The new R-1100 term rider which will provide an income of $400 a month for three years for the union member’s family in the event he is taken out of the picture is just further confirmation of our sensitivity to meeting the needs of this market we are privileged to serve. We have a long way to go to meet the standards that all of us want to meet. I have said this before. One thing is for certain: I don’t know of any company that tries to meet the needs Of its market more than American Income, and we do it in a “no razzle-dazzle” way. We sell very simple life insurance products that meet the needs of the people within our market. No gimmicks. We just sell them plain good of insurance. Well, there you have our philosophy which we trust is one you can accept as yours. We think we have our priorities in order. Our first responsibility is to our poli cyowners; secondly, to our agents and our employees; and then to our shareholders. By putting the policyowners first, this insures our ability to maintain a rate of growth that has earned us the admiration of the entire financial world. I think this note from Darrell Bedford epitomizes how fast our philosophy has enabled us to grow: Bernard: When I saw that they were giving stock for prizes this year at Tahoe, I couldn’t help but be curious as to how I came out on the 10 shares you gave me in 1964. As you might remember, there were two of us that won 10-share awards. The other agent sold his to George Fields for $8 a share or $80. I had more faith in the company. You paid me stock dividends of 10% in 1965 and 1966 and 1967; 27% in 1968; 10% in 1969, 1971 and 1972; 25% in 1974; 100% in 1979 and 1980. Ken Philips and I figured that the 10 shares have grown to 112 shares which are worth $23 per share or $2,576. I can’t remember the name of the poor soul who sold his for $80. Thought this year’s winners might be interested in this little story. Darrell We have been a company that has been good for those who invested and had faith and maintained their stock ownership. Although we started the company in 1951, we converted to a stock company in 1954. Each $1,000 invested at that particular time would be worth today $188,000. As recently as April of 1979, just about two years ago, each $1,000 invested in American Income would be worth more than $3,500 today. What do we have to do to maintain the rate of growth that will permit this progress to continue? I think adhering to those four philosophical tenets is what we have to do I am proud to tell you that today we have received the endorsement of the National Council of Senior Citizens for a life policy that we will be offering to its hundreds of thousands of members. Several companies bid on this business, and American Income was the lowest bidder and was awarded the endorsement. As you know, this organization is supported substantially by the American Labor Movement. This is one example of our entering a new market, and we expect to be accelerating our efforts in this area. One thing is unusual about American Income. When we consider a market, we will be the most comfortable and most successful when the market has a social reason for existing. For example, we have done very well with credit unions that came into existence because banks and finance companies would not loan wage earners money at reasonable rates. Credit unions were the answer to meet the financial needs of blue collar workers throughout this country, and they have met that need in exemplary fashion. So as I said, we will be continuing our efforts to expand our marketing concepts, but always within the framework of the American Income philosophy. We aren’t going to keep you here long this morning. We want you to have a lot of fun. We want you to enjoy yourselves. This is going to be a great convention. What makes me so sure is that we possess the most essential ingredient for a successful convention, which is to have it attended by great people. We have gathered here the world’s greatest sales force together with the world’s greatest labor leaders. To all of you, and most especially to our agents who write the business that makes conventions possible, thank you for being here. American Income Life Insurance Company EXECUTIVE OFFICES: P.O. BOX 208, WACO, TEXAS 78703, 817-772-3050 BERNARD RAPOPORT Chairman of the Board and Chief Executive Officer 14 AUGUST 28, 1981