The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1919-03-14
WAR END BROUGHT
INSURANCE Loss
FIGHTING HAZARD COST
U. S. $700, ,000, 900
Half of Death Premiums Due to
Disease Here And
Over There

close that the government took in
from premiums on insurance carried
by it's 100000 odd soldiers and sail
ors approximately $z00,O00,0O0 and
that it will have to pay out in death
claims and total disability claims
poilcles approXimating 100000, 900.
In short, Uncle Sans bill for carry
ing the insurance of its fighting men
at cost and absorbing the extra haz-
ard of war is $70O,0U0,00O.
The unexpected ending of the war
just when the Americans were get
ting into the fighting is responsible
for this. As it is, nearly half the
policies the government will pay are
to families OF soldiers who died from
disease, particularly the influenza in
camps both here and in France.
This loss of approximately $780,
100000 will not be made up by in
creasing the insurance rate on the
existing policies and will in no way
affect either the present term poll
cies or the future regular govern
ment insurance policies into which the
soldiers or ex-soldiers may convert
their insurance.
1t will be handled entirely indie
pendent of the existing insurance and
will be paid Ny direct appropriations
out Of the federal treasury from taxes
as the governments obligation to its
fighting men.
When the war risk insurance act
was passed it had three proposals in
it for the benefit of the soldiers and
sailors:
THAT the government would
pay the administration cost of
handling the insurance.
2-That the government would
charge the ordinary peace time
rate for the insurance and as
sumo the extra hazard of war
itself. ....
3-That the government would
assume the loss growing out of
permanent disability clauses be-
ing included in the insurance
policies.
Inside of thirty days the govern
ment will be asking the discharged
soldiers and sailors to convert theil
policies into regular insurance, sn
I policies, covering endowment, straight
life and limited pay life, being Of
fered together with the additional
feature of the policies becoming pay
able on total disability. The rates
to be charged for that insurance will
be made public within few days, the
whole plan being on the desk of Sec
retary of the Treasury Glass for his
approval.
The rates will be those charged by
private insurance companies, baset
on the American mortality tables al
IL per cent. interest, minus the
cost of administration which the gov
ernment will continue to absorb. This
will make the rates on the average
20 per cent, under insurance of pri
yate companies.
More than so per cent. of the mer
discharged neglect their insurance
payments. Much of this is due to the
fact that the former soldiers do MOI
know how to handle their premium
payments. All this will be changed
shortly when a system of payments
through the postoffices will be start
ed. Until then, the soldier shoult
; keep up his payments this way:
: Mail the amount of this
monthly premium to War Risk
Bureau, Premium Section, Wash
ington, d. c.
!. 2-Enclose with the check or
money order his name and pres
ent address and the number of
his insurance policy.
3-If he cannot give the num-
ber of his insurance policy, then
give place where enlisted and
; when insurance was taken out,
beneficiaries and other such in
: formation so as to identify from
whom the payment is made.
4-Several months premiums
can be sent at one time. if the
soldier can make the payments
and thus avoid the trouble Of
mailing check monthly.
As the government insurance will
, be at least 20 per cent cheaper thai
any private company insurance tn
, soldier might carry, the soldier b!
permitting his payments to lapse nov
is apt to lose the right to convert hi
policy into regular insurance shortly