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

life poicv of the husband as protection 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.
object of life insurance provide money In the
event of the of who provides for the home
Laws stupidity planned, ACTUALLY COMPEL THE LIFE
INSURANCE COMPANIES TO LEND MONEY TO THE POL
ICYHoLDER that and hen the poicyholder
dies the family finds that all protection has been Diped out
by the dead mans borrowing.
We have complaining that life insurance
pane enough their pocyholders that they
charge too high a rate of interest
we the power should make it impossible for any
polcyholder to BORROW A SINGLE DOLLAR ON HIS POL
ICY unless just enough to the premium in the event
of his being unable to take care of that premium
condition known by those who rely on life
for protection And does not receive aen
tion lawmakers compel the insurance companies to
permit the insured to borrow advance and waste the money
that ought to be kept to protect the family
The Georgian the and the children
who rely upon life insurance.
And we advise every 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 'paidup value"
That say the end of certain length of time after
the paying of certain premiums the policy has cash value And
in many States the law actually compe the company to lend
that cash value to the insured.
Thus of thousands of instead of carrying life
insurance protection for his family the carry
ing heavy debt He paying interest the money that he
has borrowed company, and he is also paying the
dividend to keep the policy going.
This pocyhoder simply adding his
indebtedness, THE LAW ACTUALLY ENCOURAGING HIM TO
BEA BORROWER It system absolutely ruinous
and children who depend insurance And unjust and
oppressive the companies causing them to be
justly suspected.
Over and over happens that some woman whose husband
bas herXu
her life insurance policy expecting to get the full amount of the
policy.
She is told-quite truthfuly-that
rowed the money before he died. that his policy worth very
little She also which true actually
pe the life insurance companies to lend money in this
giving the insured to be quandere used speculation that
which should be the famly's protection.
Of the who borrow on insurance policies small
amounts, only SEVEN OUT OF HUNDRED pay the
money that they In other words where hundred
borrow their policies ninety die drop the policies
without making good the loan.
The trouble originated at with the life insurance CON-
panes themselves In the days when there regulation
there keen competition for business And nducemnt
make 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
enough that companies competing with
each other for business should forget the real interest of the
icyholder and his family.
But inoOmprehensbe that lawmakers should actually
pass laws COMPELLING COMPANIES TO LEND ON POLL
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 PRO
lection FOR THE FAMILY
This newspaper suggests that instead of compelling life
insurance companies lend policies the should FORBID
SUCH LOANS.
An exception could only be made if the poicyholder is
praa pay his premium Then the life company
might well be oompeled the value of the policy justified
lend enough pay for the premium tide the
his dificulties-BUT NO MORE.
The funds life insurance companies should kept
benefit of the nsured-not paid that encou
pochoders to into debt and forget the very purpose
for which life insurance instituted
The large accumulated bv the couanie should