Atlanta Georgian., 1914-02-27
A Life Insurance Law That
CHEATS THE FAMILY
Borrowing Policies Makes Lie Insurance Ridiculous Such Loan
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 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 so that ouer ,Ohe the pocyholder
family finds that all protection has been O'ped out
by the dead mans borrowing.
We have had complaining that life insurance com
panies enough their pocyholders that they
charge high rate of interest
we power, should make it impossible for any
policyholder to BORROW A SINGLE DOLLAR ON HIS POL
ICY unless just enough to the premium in the event
of his being unable to take of that premium
The actual condition by those who rely on life
for protection And does not receive proper atten
on from lawmakers compel the insurance companies to
permit insured borrow 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 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 paidup value
say the end of certain length of time after
paying premiums the policy has cash value And
many States the law actually compels the lend
that cash value to the man insured.
Thus thousands of instead of carrying life
insurance protection for his family the carry
ing heavy debt He paying interest the that he
has borrowed from the and he is also paying the
dividend to keep the policy going.
This is disastrous pocyhoder simply adding his
indebtedness, THE LAW ACTUALLY ENCOURAGING HIM TO
BE BORROWER system absolutely rninous
children who depend upon insurance And it is unjust and
oppressive the insurance companies causing them to be
justly suspected
over and over it happens husband
has suddenly died. leaving young children appears
0f
policy.
She tod-quite truthfuly-tha her husband had bor-
rowed the money before he died that his policy worth very
little She is told also which true that the law actually
pels the life insurance companies to lend in this
giving the insured be quandered used speculation that
which should be the family protection.
Of the life 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 ever making good the loan
The trouble originated first with the life insurance
panes themselves In the days when there regulation
there competition for business And nducement
their lives the companies offered lend
money the policy any time And they
incorporated that agreement lend in the policy itself
natural enough that the companies competing
forget
icyholder and his family.
ncomprehensibe actually
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 AD
VANCE THE MONEY THAT OUGHT TO BE KEPT AS A PRO
LECTION FOR THE FAMILY
This newspaper suggests compelling life
insurance companies lend policies should FORBID
SUCH LOANS.
An exception could only be made if the policyhoder
unable to pay his premium Then the life company
might well be compeed the value of the policy justified it
lend enough pay the premium tide
his dfculties-BUT NO MORE
The funds of life companies kept intact
for the benefit of the nsurednot paid
age pocyhode into debt and forget very purpose
for which life insurance was instituted
The large accumulated by the companies should be
for the pocYhoder under sctest