Atlanta Georgian., 1914-02-27
A Life Insurance Law That
CHEATS THE FAMILY
Borrowing Policies Makes Lie Insurance Ridiculous Such Loans
Shoud 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, that and 0hen the pobcvhoIder
dies the family finds that all protection has been wiped out
by the dead mans borrowing.
We letters complaining that life insurance com
panes do lend enough their pocyhoder or that they
charge too high rate of interest
power should make it impossible for
policyhoder to BORROW SINGLE DOLLAR ON HIS POL
unless just enough pay the premium in the event
of his being unable to take care of that premium
The actual condition not by those who rely life
protection And does not receive proper atten
on from lawmakers compel the insurance companies to
permit the 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 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 ''pad-up value
That say the end of certain length of time after
the paying of certain premiums the policy has cash value And
many States the law actually compe the company to lend
that cash value to the insured.
Thus tens thousands instead of carrying life
insurance which protection for his family the
ing heavy 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 the poicyhoder simply adding
Indebtedness THE LAW ACTUALLY ENCOURAGING HIM TO
BE BORROWER 1t system absolutely ruinous to
children who depend insurance And it is unjust and
oppressive to the insurance companies causing them to be un
justly suspected.
Over it happens that whose husband
suddenly died leaving her with young children appears with
her life insurance policy expecting to get the full amount OF the
policy.
She is tOd-quite truthfuly-that her husband had bor
rowed the money before he died that his policy worth
little She is told Also which true that the law actually
pels life companies to lend money this way
giving the insured be squandered used speculation that
which should be the famiy's protection.
OF the life insurance policies small
amounts, only SEVEN OUT OF HUNDRED ever pay the
money that they words hundred
their policies ninety three die, drop the policies
without making good the loan.
trouble originated first with the life insurance
panes themselves In the days when there regulation
competition for business And induoement
to make their lives the companies offered lend
certain amount of money the policy time And they
incorporated that agreement lend money in the policy itself
enough that the companies competing with
business should forget the real interest the pol
icyholder and his family.
incomprehensib that lawmakers should 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 AD-
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
An exception could only be made if the poicyholder
unable to pay his premium the life company
might well compeed-n the value of the policy justified it
to lend enough pay the premium and tide the
his d1iculties-BUT NO MORE.
The funds companies should be kept
for the nsured-not paid loans that
age pocyhoders debt and forget the purpose
for which life insurance instituted
large accumulated by the companies should be
the pocyholders under the