Atlanta Georgian., 1914-02-27
A Life Insurance Law That
CHEATS THE FAMILY
Borrowing Policies Makes Life Insurance Ridiculous Such Loans
Shodd 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 is provide in the
event 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 so that and tOhen the pocyhoder
dies the family finds that all protection has been u'ped out
by the dead mans borrowing.
We have had complaining that life insurance com
panes enough their pocyhoders that they
charge too high a rate of interest
power should make it impossible for
policyholder to BORROW A SINGLE DOLLAR ON HIS POL
just enough to the premium in the event
of his being unable to take of that premium
The actual condition by those who rely life
insurance protection And does not receive aen
ton from lawmakers compel the insurance companies to
permit advance and waste the money
that ought to be kept to protect the family.
The Georgian interested and the children
who rely upon life insurance.
And we every who believes that her husband
for the 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 'pad-up value"
That is say certain length of time after
the paying Of certain premiums the policy has cash value And
many the law actually compels the company to lend
that cash value to the insured.
Thus instead of carrying life
which protection family man is
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 is disastrous to poicyhoder simply adding his
indebtedness THE LAW ACTUALLY ENCOURAGING HIM TO
BORROWER. 1t system absolutely runous to
children who depend upon insurance And unjust and
oppressive the insurance companies causing them to be
justly suspected.
it happens that whose husband
has suddenly died leaving her with young children appears with
her life insurance policy expecting get the full amount of the
policy.
She is told-quite truthfully-that husband
rowed money his policy worth very
She told which true that the law actually
pels the life insurance companies to lend in this
giving the insured to be quandered used in speculation that
which should be the family protection.
Of who borrow life insurance policies small
amounts, only SEVEN OUT OF A HUNDRED pay the
money that they In other words where hundred
their policies ninety three die drop the policies
without making good the loan
The trouble originated first with the life insurance
panes themselves In the days when there regulation
competition for business And nucement
to their lives companies
certain of money the policy time And they
incorporated that to lend money in the policy itself
enough that companies competing with
should forget the real interest of the pol
icyhoder and his family.
pass laws COMPELLING COMPANIES TO LEND ON POLL
ICIEs AND THUS GIVING TO THE PoLICYHoLDER WHO
is 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 to lend policies the law should FORBID
SUCH LOANS.
An exception could only be made if the poicyhoder
unable to his premium the life company
might well be compelled the value of the policy justified it
lend enough pay for the premium over
his difhculties-BUT NO MORE.
The funds of life insurance companies should kept
for the benefit of the nsurednot paid
age pocyhders debt forget very purpose
for which life insurance instituted
The large accumulated by companies should be