The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1919-07-10
GOVERNMENT INSURANCE
PLAN FULLY EXPLAINED

premium does not increase. For exam |
pie, If you are age % at your next
birthday and take out an Ordinary Life
policy, the cost would be $1.29 per
81 900 per month, and this premium
would apply year after year without
insurance.
In the long run the cost of the new
insurance, if you should discontinue
your policy at any time, is consider
ably less than you are now paying be-
cause you always have the cash surren-
der value, a refund is made should you
cancel or lapse your insurance at any
time. This cash surrender value is eX-
planned later in this article.
1t is the cash surrender value which
makes life insurance on the new gov
eminent plan an investment as well
as a protection. 1t is designed along
the same lines as life and endowment
insurance issued by private companies,
but by comparison you will find that
the premiums are lower than you would
pay for similar policy with private
companies. You can verify this by writ
ing the home offices of any of the var
ious life insurance companies.
Life insurance on the new plan isn't
something for which you pay out good
ance is not a gambleThe man woh'
neglects to insure himself is the gam
bier Even if you don't die, life insur-
aey and get no return. Life i1'~'
ance is an investment and a savings,
1t is an Investment and savings be-
cause, if at any time you feel the need
for insurance protection no longer
exists, the savings feature called the
leash surrender value" is refunded to
what Is the Cash Surrender Value"
Some men say: well, if life insur-
ance is not a gamble. The man who
why can't / invest my money and do
Just as well?" To this We reply :"Great
that's fine idea-If you will actually
saye-If you will live long enough to
mature your investments-If you will
save consistently If you will invest
wisely-If--but why go further? There
are dozens of IFS that make life in
surance the only sure method of saw
ing or investing so as to make an es-
tate a certainty.
The new government policies are
based on the legal reserve plan. rms
is a plan whereby each policy stands
on "its own feet" The cost of the war
risk insurance as issued during the
war is based solely on the chances OF
your dying within a given year True
elsaugh the rates Oh youthful ages are
low, but as you grow older the rates
of this insurance would be eXhorDl-
tant. In addition 1t contains no dlVl-
dends, and no cash surrender value.
On the legal reserve plan the COST
of carrying the risk is averaged so that
YOU pay level premium each year ana
/. this premium does not Increase. FOR eX-
ample. If you are % and take out an
, Ordinary Life Policy, the cost would
he S1.29 per 500 per month, and TINS
same rate would apply year after yeai
, without any increase, as long as the
policy is in force.
The plan of averaging the cost OF
carving the risk is the plan generally
, followed by life insurance companies
1t provides for slight excessive pay
ment in the early years of the pohcs
? But this excess permits a surplus u
accumulate and this surplus together
with accumulated interests, belongs Il
I Won should you ut any time surrehue
D your policy. do
Therefore. the cash Surrehde
value" is this excess WhiVi -" ~
naid in this savings fund which rs re
funded to you with interest Shoul'
4 You drop your policy.
Let us take age % for example
Cost of ordinary life policy Tor
. $4,000 annually ----------a To- =
: Dividends Of 10 percent to 20 percen
= Of premiums paid hack to You at en-
= Of each year, depending on numbe
~ deaths occurring and interest
J., money earned. ~.
, IN addition, If You drop the l"i,N -,
:, Won will receive refund rs per tn
:, following table: 20.
x s. az of year ---z-------S ."
h At cn1 of , ycars----------s co., .
y At end of 10 years-----------s a., ,cr
= At end Of 10 years 800, 90
~ years -rI 30 :
. At ond Of 30 vears------.----Ne' =, :
u 1u,o cash surrender value n othf
u 600, ond On other tvnes of policiel
- iess or more. denepdi"g on the ~
q tyne of policy and nremium PAID
"vkat PIE D'"'deadsY' !,
v we have explained that rnner .
=, loaoI raserve plan the cost or llSu