Atlanta Georgian., 1914-02-27
A Life Insurance Law That
CHEATS THE FAMILY
Borrowing Policies Makes Lie Insurance Ridiculous Such Loans
Should Be Forbidden---NOT ENCOURAGED BY LAW

AND IF THEY KNEW THE FACTS THEY WOULD
REALIZE TO THEIR SORROW THAT THE LIFE INSUR
ANCE POLICY is NO PROTECTION AT ALL BECAUSE
THE INSURED HAS BORROWED THE FULL VALUE OF
THE POLICY.
The object of life insurance provide money in the
OF the death of who provides for the home
Laws stupidity planned, ACTUALLY COMPEL THE LIFE
INSURANCE COMPANIES TO LEND MONEY TO THE POL
ICYHoLDER that and ,ohen the pocyhoIder
dies the family finds all protection has been Oiped out
by the dead mans borrowing.
We have had letters complaining that life insurance
panes do not lend enough TO their pocyhodrs or that they
charge too high a rate of interest
If had the should make it impossible Tor any
policyholder to BORROW A SINGLE DOLLAR ON HIS POL
ICY enough the premium in the event
of his being unable to take of that premium
condition known by those who rely on life
for protection And does not receive proper atten
lawmakers who compel the insurance companies to
permit advance and waste the
that ought to be kept to protect the family
The Georgian is interested the and the children
who rely upon life insurance.
advise every who believes that her husband
is insured of his children TO FIND OUT HOW
MUCH HE HAS BORROWED ON THE POLICY and try to
prevent any further borrowing.
Each policy has a certain paidup value
That say the end of certain length of time after
the paying premiums policy has cash value And
many States the law actually compes the lend
that cash value to the man insured.
Thus thousands of instead of carrying life
insurance protection his family the carry
ing heavy debt He paying interest the money that he
borrowed from the company and he is also paying the
dividend to keep the policy going.
This disastrous pocyhoder simply adding his
indebtedness THE LAW ACTUALLY ENCOURAGING HIM TO
BE BORROWER. a system absolutely ruinous
depend upon insurance And unjust and
oppressive companies causing them to be
justly suspected.
Over and happens that whose husband
suddenly leaving with young children appears with
of
policy.
She is tod-quite truthfuly-ha her husband had bor-
money before he died. that his policy worth very
little She is told Also which true that the law actually
pes the life insurance companies to lend in this
giving the insured be quandered used speculation that
which should be the family S protection.
Of the men who insurance policies small
amounts, only SEVEN OUT OF HUNDRED pay the
money that they borrow In other words where hundred
borrow their policies ninety three die drop the policies
without making good the loan.
originated with life
panes themselves In the days when there regulation
there competition for business And nducement
to make insure their lives the companies offered to lend
money the policy any And they
incorporated that agreement lend money in the policy itself
natural enough that the companies competing
each other business should forget the real interest of the
icyhoder and his family.
incomprehensibe actually
pass laws COMPELLING COMPANIES TO LEND ON POLL
ICIES AND THUS GIVING TO THE PoLICYHoLDER WHO
ID IhHlNG ~ FhOIECI HIS FAMILY, 1hE OON0IANI
TEMPTATION TO GO INTO DEBT AND SPEND IN AID
VANCE THE MONEY THAT OUGHT TO BE KEPT AS PRO
LECTION FOR THE FAMILY
This newspaper suggests that instead of compelling life
companies to lend policies the law should FORBID
SUCH LOANS.
An exception could only be made the pohcyhoder is
urahs his Then the life company
might well be compedf the value of the policy justified it
to enough pay premium man over
his dificultes-BUT NO MORE.
The funds Of life insurance companies should he kent
the benefit of the nsurednot paid
age pocyhoders forget very purpose
for which life insurance instituted.
The large accumulated by the companies should
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