Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-19
STATE INSURES THEM
Belgian Government Cares
for Its People.
SELLS ANNUlTIES, TOO
THRIFTINESS ENCOURAGED IN
KING LEoPoLD's SUBJECTS.
Citizens of Lowland Kingdom Pro-
tected Against Penniless Old Age
Have Few Beggars.

Few people IN this country are aware
that the paternal government of Belgium
does general life insurance business. is
suing both straight life policies as well
term, endowment, policies. 1t goes fur
Their and contracts to pay annuites to such
of it's citizens as desire them. This life
insurance and annuity business Is grated
upon the governmental postal savings bank
system. Almost identically the same ma
chinery operates all three. While 1t is not
at all likely that the United States will
ever go into the life insurance and annuity
business, the pending New York insurance
scandals and the consequent suggestion
of ma tional regulation of insurance concerns
lends a peculiar interest just now to the
Belgian governmental system of insurance
and postal deposits. Under this singular
financial system, the poorest individual in
the little kingdom can secure a moderate
life insurance policy or annuity by the pay
ment of trihing annual premiums, or derive
interest on his small deposits in the postal
savings bank.
The system, paternal to an extreme was
adopted to encourage national thrift, and
has fully indicated its purpose. There are
few or no beggars in Belgium. 1t works
smoothly, and apparently is without flaw.
No corruption has developed in connection
with the system, complex and peculiar as it
is. 1t has been in pra ctice upward of half
century. The balance sheet of the Bel
gian National Bank on December 81, 1903
the last report within TedCn, showed uS-
posits to the credit of the three institu-
tons of $45 992, 1853, approxtma tely 81 per
head of the total population of Belgium
The aggregate is much greater now.
Postal Savings System.
The most important branch. of course,
is the postal savings system, well worth
a study. Every possible facility to make
deposits is afforded the public. They are
made in the post offices and bank agencies
in sums as low as % cents. More than
$500 cannot be deposited In any period of
two weeks without special authorization.
The Interest rate is fixed periodically by
the government. At the close of the year
the interest is added to the plnclpal and De-
gins 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 ali other transactions between the pos
tai savings bank and the depositor. These
books are called in for the annual calcutta
ton of interest. To prevent individual eX-
travagance depositors are prohibited from
hypothecating these bank books without
special permit After receiving his book
the new depositor can have entries made
at any post office in the kingdom. DepoS-
it's may also be made by postage stamps
up to $193 per month. To encourage de-
posts by children and the very poor post
men in the rural districts carry with them
the facilities for the purpose.
To get a book the depositor signs an
agreement that he understands the rules,
and that he will accept no receipt for de-
posts. except the adhesive stamps, etc.
| Withdrawals of funds may be made at any
| post office on application within hfteen
| days after the last deposit. For Withdraw
| ing sums between $3.50 and $193 one
months notice must be given; for S193 to
$579. two months, and for sums above So79
six months.
The management is a general council of
| fn,, o6d-S nd a
board Of six directors and a general man
| ager. All appointed by the king for
| six years. The general manager is sub
| 1ect to dismissal, and may not be MEM
| Der of either house of parliament. The sys-
| TEN Is constantly growing in favor. This
| postal savings system is no new thing. 1t
| has been much discussed in this country,
and its adoption urged in Congress.
How Annuities Are Paid.
| But the Belgian life annuity and life in
| surance adjuncts something unique.
| Yet they apparently successfully con-
| Quoted to the entire satisfaction of King
| Leopold's subjects. There is no data, how
ever, showing the extent of their opera
! tons. BY the required payments into the
| government annuity fund persons can Sc
| cure for themselves or the benefit of others
| life annuities that cannot be seized for
| debt, and moreover, secure the payment or
| the capital paid in for the annuity to the
/
| for annuities be made at all post
offices, national bank agencies and
| branches of the savings bank. The largest
| annuity paid by the government on such
! deposits is 1921. 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
| on the payment of the necessary capital
! may be arranged for. 1t can be arranged
| so that the whole capital goes TO the fund
after death, which gives the annuitant a
| larger annuity. A person. depositing Sl93
at the age of twenty-five would receive an
nually after fifty $3.50; If contracted to be-
| gin at ffty-fve, 5000; at sixty, $S910; at
sixty-five, S149.S0
All Kinds of Insurance.
| In connection with this annuity fund Is
an insurance fund. Both straight life and
the endowment policy may be contracted
| for Endowment; can be made payable at
the end of ten, fifteen, twenty or twenty
| five years, for period ending at fifty
| five sixty, or siXty-five years of age. The
| contractor must be twenty-one, and the
| beneficiary at least twenty-one and not
| over ffty-fve. The largest sum to be paid
! any one person on policy is $1,000, An
annual premium of $3.50 from a person
| thirty-five years old leaves his heirs as
follows: If contracted to pay until fifty
| five, $556.32; sixty, S6S9.57 sixty-hve,
| 1888 SO. A person of thirty-five. paying an
nually $3.50 for an endowment. receives at
| certain ages these sums: AT hfty-five,
| $418.26; at sixty, $51s55; at sixty-fve,
| $6O5 sc.
This is apparently simple, cheap and re-
| liable insurance. There is doubtless a
| small profit accruing to the government for
| doing the business, but 1t must be minutes
| imal 1t is palpably arranged in the In
est of the policyholders. and not of the off,
| Gals.
| Whether life insurance by government
| could be adapted to conditions in this coun-
| try is worth the attention of students of
| the system in the circumstances. The sue
| cesSful Belgian practice for fifty years