Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-02-27
A Life Insurance Law That
CHEATS THE FAMILY
Borrowing Policies Makes Life Insurance Ridiculous Such Loans
Should Be Forbidden---NOT ENCOURAGED By LAW

policy the husband protection for children
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
event of the death of one who provides for the home
Laws, stupidity planned, ACTUALLY COMPEL THE LIFE
INSURANCE COMPANIES TO LEND MONEY TO THE POL
ICYHoLDER so that and Dhn the pocyholder
dies the family finds that all protection has been 'ped out
by the dead mans borrowing.
We have had letters complaining life insurance
panies lend enough to their pocyholder or that they
charge high a rate of interest.
If we had the power should make it impossible for any
polcyholder to BORROW A SINGLE DOLLAR ON HIS POL
enough the premium IN the event
of his being unable to take of that premium.
The actual by those who rely life
protection And does not receive aen
ton lawmakers who compel the insurance companies to
permit insured borrow advance and waste the money
that ought to be kept to protect the family
Georgian interested in the and the children
who rely upon life insurance.
And we advise every who believes that her husband
is insured benefit 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 is to say end a certain length of time after
paying of certain premiums the policy has cash value And
many States the law actually compes the company to lend
that cash value to the insured.
Thus in Of thousands of instead of carrying life
insurance which protection for his family the man carry
ing heavy debt He is paying interest the 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. 1t is system absolutely rinous to
and depend upon insurance And unjust and
oppressive companies causing them to be
justly suspected.
Over and over happens that some woman whose husband
her life insurance policy expecting to get the full amount of the
policy.
She is told-quite truthfuly-that husband
rowed the money before he died that his policy is worth very
little She also which true that the law actually
pes the companies lend money this way
giving the insured to be squandered used speculation that
which should be the famly's protection
OF the who borrow life insurance policies in small
amounts, only SEVEN OUT OF HUNDRED pay the
money they borrow In other words where hundred
borrow their policies ninety three die drop the policies
without making good the loan.
The trouble originated at first with the life insurance
pane themselves In the days when there regulation
competition for business And Involvement
to their lives the companies offered lend
money the policy any time. And they
incorporated agreement lend money in the policy itself
natural enough that the companies competing with
business should forget the real interest of the pol
icyholder and his family.
But it is incomprehensbe actually
pass laws COMPELLING COMPANIES TO LEND ON POLL
ICIES AND THUS GIVING TO THE PoLICYHoLDER, WHO
rs TRYING TO PROTECT HIS FAMILY, THE CONSTANT
TEMPTATION TO GO INTO DEBT AND SPEND IN AID
VANCE THE MONEY THAT OUGHT TO BE KEPT AS A PRO
lection FOR THE FAMILY
This newspaper suggests that instead of compelling life
companies lend policies the law should FORBID
SUCH LOANS.
exception could only be made if the policyholder
unable pay his premium Then the life insurance
might compeled-f the value of the
enough pay for the premium and tide the
his diffculties-BUT NO MORE.
funds of life insurance companies should kept
for benefit of the nured-not paid
age pocyhoe debt forget the very purpose
for which life insurance instituted
The large accumulated the companies should be