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

policy tho husband proeclon chdfen
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 life insurance is to provide money 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 that and IOhe the poicyholder
dies family finds that all protection has been toiped out
by the dead man $ borrowing.
We have had letters complaining that insurance
panes do lend enough their pocyhoders that they
charge too high a rate of interest
If we had the power impossible for any
poicyhoder to BORROW SINGLE DOLLAR ON HIS POL
ICY unless just enough the premium in the event
of his being unable to take care of that premium
condition by those who rely life
for protection And does not receive proper an
lawmakers who compel the insurance companies to
permit insured borrow advance and waste the
that ought to be kept to protect the family.
The Georgian interested and the children
who rely upon life insurance.
And advise every who believes that her husband
is insured 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 ''paid-up value
That say the end of certain length of time after
the paying certain premiums the policy has cash value And
many States the law actually compels the company lend
that cash value to the insured
Thus tens of thousands of instead of carrying life
insurance which a protection family 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 is disastrous to the pooyhOder simply adding
indebtedness, THE LAW ACTUALLY ENCOURAGING HIM TO
BE BORROWER. 1t system absolutely ruinous to
and children who depend insurance And unjust and
oppressive the companies causing them to be
justly suspected.
it happens that whose husband
suddenly died. leaving her with young children appears with
her life insurance policy expecting get the full amount of the
policy
tod-quite truthfully-tha her husband had
the money before died. that his policy worth very
little She told also which that the law actually
pes the life insurance companies lend money this way
giving the insured to be squandeed used speculation that
which should be the famy's protection
Of the men who borrow on life policies in 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 at first with the life insurance
panies the days regulation
competition for business And nducement
insure their lives the companies offered lend
certain of money the policy any time And they
incorporated that agreement to lend in the policy itself
natural enough companies competing with
each other for business should forget the real interest of the
cyholder and his family.
But it ncomprehensibe that lawmakers should 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 AID
VANCE THE MONEY THAT OUGHT TO BE KEPT AS A PRO
lection FOR THE FAMILY
This newspaper suggests that instead of compelling life
insurance companies lend policies law should FORBID
SUCH LOANS.
An exception could only be made if the poicyhoder is
unable pay premium insurance company
might well be compeed the value of the policy justified it
enough pay premium the man over
his difcuties-BUT NO MORE.
The funds of life insurance companies should
for the benefit of the nuredno paid loans that
age poCyhode to into debt and forget the very purpose
for which life insurance instituted.
The large accumulated by companies should be