New-York tribune., 1905-11-13
GOVERNMENT INSURANCE.
life Policies and Endouments
Granted By Nation IN Belgium.

Eew
,aternal government of Belgium does a general
,;to Insurance business. issuing both straight
,,se nolicies as well term or endowment poll
-, If goes further and contracts to pay an
.see m such of its citizens desire them
rb,s life insurance and annuity business is
o-sfte6 upon the governmental postal savings
senk system. Almost identically the same ma
chinery operates all three.
Vrb1e IL is not at all likely that the United
c,ates will ever go into the life insurance ana
,nritv business, our recent insurance scandals
and the consequent suggestion of national resu-
,..ion of insurance concerns lend peculiar in
,eresr lust now 10 the Belgian governmental
svsteu of insurance and postal deposits.
Under this singular financial system the poor
-. individual in the little kingdom can secure
-,oderate life insurance policy or annuity by
,,a navmeut of trifiing annual premiums. or de-
-t,o interest on his small deposits in the postal
savings bank
The system, paternal to extreme. was
sdonted to encourage national thrift and mas
,nllv vindicated its purpose There are few or
mn beggars in Belgium 1t works smoothly ana
snnarently is without a flaw. No fiscal corrup-
atom has developed in connection with the sys-
tenn complex and peculiar as it is Ii mas peeh
IN practice upward OF half century
The balance sheet of the Belgian National
A"NC'
within reach. showed deposits to the credit of the
three institutions of So 992. .76s, approximately
e. a head of the total population Of Belgium
The aggregate is much greater now
The most important branch. OF course is the
rostal savings system well worth a study
Every possible facility to make deposits is al
forded the public. They are made in the post
offices and bank agencies in sums as low as 20
cents More than $3.50 cannot be deposited in
any period of two weeks without special authori-
zation. The interest rate is fixed periodically
bv the government At the close of the year the
interest is added to the principal and begins to
draw interest itself
Each depositor receives a bank book free OF
charge Special adhesive deposit stamps are
used which are receipts for money paid in. and
are pasted in this bank book. In it, also, are
entered calculations of interest, and all other
transactions between the postal savings bank
and the deposition.
These books are called in for the annual cal
culation of interest. To prevent individual ex-
trayagance depositors prohibited from hy-
pothecating these bank books without a special
permit. After receiving his book the new de-
positor can have entries made at any postoffice
in the kingdom. Deposits may also be made by
postage stamps up to 81 93 a month. To en-
courage deposits by children and the very poor,
postnen in the rural districts carry with them
the facilities for the purpose
To get a book the depositor signs an agree
ment that he understands the rules, that he viii
accept no receipt for deposits except the ad-
hesive stamps, etc. When a book is lost a dupli-
cate is furnished under certain formalities. All
postal officials are instructed to encourage
postal savings deposits.
Withdrawals Of funds may be maze at any
ostoff1ce application within fifteen days after
ne last deposit The book must be produced
.lalr fTa cicrT1Cr
OF the postmaster. The depositor must be iden-
titled If at a postofice other than the one issu-
ing the book For withdrawing sums @ between
500 80 and S193. one months notice must be
given: for S193 to 1913 two months, and for
sums above 1919 six months.
There are other minute rules, but on the whole
the system is simple. The depositor can have
his deposits converted into Belgian bonds and
on notice to him the postal savings bank can
convert all sums more than S51S into such
bonds.
The management is general council of TWEEN
ty-four members and a president, a board OF SIX
directors and general manager All are ap.
pointed by the King for six years. The general
manager is subject TO dismissal, and may not be
member of either house of Parliament.
The system is constantly growing in favor.
This postal savings system is no new thing. 1t
has been greatly discussed in this country and
its adoption urged in Congress.
The Belgian life annuity and life insurance
adjuncts are something unique Yet they are
apparently successfully conducted to the en-
tire satisfaction of King Leopolds subjects
There data, however showing the ex-
tent Of their operations. By the required pay
rnents into the government annuity fund, per-
can secure for themselves the benefit
OF others life annuities that cannot be seized
for debt, and moreover secure the payment Of
the capital paid in for the annuity 10 the ben
efciaries heirs after death
Payments for annuties be made at all
postoflces, national bank agencies and branches
OF the savings bank The largest annuity paid
by government on such deposits is S231. go per
annum; the smallest, one franc Q9-3 cents)
Annuities DO not begin until the age of fifty,
and are payable annually. Annuities TO begin
Immediately the payment of the necessary
capital may be arranged for. 1t be ar
ranged that the whole capital goes to the
!und after death, which gives the annuitant
larger annuity. A person depositfng Sl93 at
the age Of twenty-five would receive annually
after fifty, $3.50: IL contracted to begin at
nfty-lve. $3.50; at sixty, SS910; at sxty-fve.
S14SS0
In connection with this annuity fund Is
an insurance fund. Both straight life and the
endowment policy may be contracted for En-
comments can be made payable at the end OF
zen. fifteen. twenty or twenty-five years, or FOR
period ending at fifty-fve sixty, or sixty-fVe
years Of age The contractor must be twenty
one. and the beneficiary at least twenty-one
be paid any one person a policy is S1,oOo.
An annual premium of $3.50 from a person
tnirty-fve years old leavee his heirs as follows:
II contracted TO pay until ffty-five. Soo6.o2
Sixty, s639.57; sixty-hve, OS3 %; person OF
thirty-fye, paying annually Sl9o0 for an en-
0owment, receives at certain ages these sums:
Al hfty-five. S41S-26: at Sixty. SoIooo; at
sixty-fve. S605S6.
This is apparently simple cheap and rehanie
insurance. There is Doubtless srnaH pront
eeeruing to the government Tor DONG the pusl-
ness bat if must be infinitesimal- 1t is palpa-
bly, arranged in the interest of the poicyhoid-
ers. and not OF the officials
Whether life insurance by government could
be adapted to conditions in this country Is
worth the attention Of students OF the system
In the circumstances The successIu beisidl
practice for fifty years demonstrates mat the
policy is eea chile among European popula-