Anniversary gift: Church-owned company celebrates its centennial
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On the 100th anniversary of Beneficial Financial Group — a Church-owned company formerly named Beneficial Life Insurance — President Gordon B. Hinckley announced that The Church of Jesus Christ of Latter-day Saints Foundation will make a sizeable contribution to build a community center that will be attached to and become part of the Rose Park Elementary School in Salt Lake City.
"Consistent with Beneficial's values, this community center will be used to strengthen individuals and families by addressing the learning needs of parents and their students in this very deserving area of the Salt Lake Valley. It will increase collaboration between parents, students, school, and community. It will also house an Intermountain Health Care clinic and allow for child care while parents attend classes and volunteer in the school."
The $300,000 contribution will be used to match a similar amount of money and services to be raised to construct what will be known as the Beneficial Financial Group Rose Park Community Center, President Hinckley said in making the announcement at Beneficial's centennial dinner program at Grand America Hotel in Salt Lake City Friday evening, May 6.
Referring to the company's anniversary, President Hinckley said, "It is difficult for me to believe that I have been around for 95 of the 100 years of the company's life."
Noting there are few organizations in Utah as old as Beneficial, he reviewed a bit of its history, relating how its three initiators — Lorenzo N. Stohl and two brothers, Nathaniel George and John Stringham — raised $100,000 to establish the company in 1905. "The Church was the chief subscriber, and eventually became the sole owner of the company," President Hinckley said. "But it was the over-towering influence of Heber J. Grant, brother-in-law of the Stringhams, that motivated the pioneer organization."
President Hinckley said it is interesting and significant that President Grant's great-grandson, Kent H. Cannon, is president and CEO of the company as it begins its second century of operation.
"In the world in which we live, insurance fills a most unique and important role," President Hinckley said. "It becomes something of an investment requiring constant discipline to keep it in force. But more importantly, it assumes the risk of death and softens the blow that inevitably follows the passing of a loved one.
"From the first claim paid in September of 1905 to the present time, legions have been the numbers of those whose life insurance has proved to be Beneficial. Through all of these many years it has lifted the mortgage that clouded the title of many homes, it has provided for education of widows and children, it has given security to families when the breadwinner was taken.
"The years of Beneficial's life have been filled with perils of various kinds. While the company was still in its infancy, World War I struck; then came the dreadful influenza epidemic of 1918, which took thousands upon thousands of lives. The great Depression of the 1930s followed; and then came World War II. Following this there was the Korean War; then the war in Vietnam, followed by the Gulf War. Now, we are again at war, in Afghanistan and Iraq. Ominous clouds hang on the horizon with threats of nuclear arms in the hands of Iran and North Korea.
"Through these cataclysmic events of all these years, Beneficial has remained solvent and paid every claim. It is a most remarkable and wonderful record.
"Now the company has enlarged its vision. While continuing with insurance, it has moved out into other fields of personal finance. Its representatives are now empowered to serve as counselors and advisers, as well as vendors of various kinds of securities."
On a light-hearted note, President Hinckley said, "I am now in a race with the company. I have a Beneficial policy under whose provisions the company becomes the beneficiary if I live to be 100. If I pass on before then, my estate will be benefitted. Kent, tonight I feel just great. I have had a steak and salmon dinner, and I'm in the race to see who wins."
In addition to the contribution announced by President Hinckley for the construction of the community center, Brother Cannon announced that Beneficial Financial Group, as a 100th anniversary gift to the community, was establishing a scholarship fund through which 40 scholarships of $2,000 each would be provided to post-high school students. "We are looking for students who may be overlooked by traditional scholarships. Beneficial is about helping those in need, and we want to award students who have endured trying life circumstances," he said.
The anniversary program included a video highlighting the history of the company and comments about it by President Thomas S. Monson, first counselor in the First Presidency; and President Boyd K. Packer, Acting President of the Quorum of the Twelve.
Brother Cannon, in brief remarks, said that although the name had changed from Beneficial Life Company to Beneficial Financial Group its roots have not changed. The company, he said, was founded to help the widow and the surviving children, and continues to function in like manner.
Harold C. Yancey, chairman of the board of the company, said that Beneficial was based and continues to function on the principles of integrity and honesty.
