Certificates are kept by a bank (as custodian) which will automatically deduct from the initial investment $2.50 for opening the account. The bank receives all payments, and mails confirmations showing the investor the number of shares purchased, the exact price paid, and total shares owned. Dividends and distributions are automatically reinvested in additional shares. The account is flexible in that regular payments may be increased or reduced, shares in varying amounts may be deposited with or withdrawn from the custodian bank, or the account may be terminated completely at any time. If previously purchased shares still owned reach a value of $25,000, an investor becomes eligible for a reduced sales charge on current and future purchases.

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The present income dividend is about 10% extra per month. All of the above income would be tax-favored as compared to ordinary investment income. The income or annuity return per $1,000 of accumulated cash in the insurance policy is guaranteed by contract as of the date of issue for future delivery. It is interesting to note that the cost of an annuity at 65 has been increased seven times in the last 20 years as the science of geriatrics has prolonged life. There are really only two general categories of life insurance policies: (1) those that insure only and are called term insurance policies and (2) those that provide not only insurance but savings as well. Here are included the straight life policies, endowment policies and retirement income policies, etc.

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