Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1919-06-06
FACTS ABOUT WAR
risk INSURANCE.
Soldier Has Several Options as
to DispOsitiOn-Similiar to
Standard Old Line
Policies

every pcrbOn IN the OVERWHELMINGLY VI
naval service was given the privilege
Of obtaining from the United States
insurance against death and total per-
manent disability in amounts up to
$4,000.
This insurance is issued by the
bureau Of war risk insurance Of the
treasury department, and the plan
was what is known as the yearly re-
Movable term, which means that the
cost each year increases a little, but
very little, each years premium being
at the then attained age of the in
sured.
In the regular life insurance pre-
MUM there are three elements, NOR
tality, reserve and loading. The NOR
tally is the actual amount the insur-
ing institution has at risk upon the
particular individual life as calculated
by the law Of average; the reserve Il
the sinking fund necessary to main-'
tain the guarantees Of the policy con-
tract in excess Of the pure mortality
element. These two elements make the
net premium, to which, in the regular
insurance company, is added the load
ing, or expense element.
The premium of the war risk insur-
ance policy does not include any
charge for expense, but is made up Of
the two elements of mortality and re-
serve making this insurance sold at
the net premium.
Can Run Five Years
The present form of term policy
may Ibe continued for a period not
longer than five years from the date
peace is officially proclaimed. This
does not mean from November II last.
If conversion into some other form
of policy is not made by the expira-
ton Of five years from date peace is
declared the insurance automatically
ceases.
1t is not necessary to continue the
original amount taken, less amount
may be continued at the proportion
ate cost to the insured.
Any time during the five-year period
mentioned, providing the term insur-
ance is then in full effect, the policy
holder may exchange his contract for
one of the usual forms of life, limitedS
payment life or endowment plan, with
out medical examination or other EVIL
dence of good health, at the premium
charge for attained age, but with no
credit for premium paid upon the
term insurance.
The premium on the new form pol
icy will be, as with the term policy, at
the net rate, 3h per cent reserve
basis, which, for example, for age 25
on the twenty-payment life policy will
be $22.56 annually, or $1.91 monthly
per $1,000. Premiums may also be
paid quarterly or semi-annually.
The basis of charge is the monthly
premium, instead of the annual pre-
MUM, as with the regular companies,
and should a policy become a claim
with premiums paid farther in adj
vance than the current month the un-
earned premiums will be refunded.
May Be Paid Monthly
The policies provide for payments
of $5.75 per month per 100000 for
240 months definitely to beneficiary
named, in event of death loss, they
further provide for payment Of $5.75
per month as long as the insured lives.
In the event of the insured becoming
totally and permanently disabled, with
the further guarantees that should the
policy enter upon its mission of pay
ing the insured for total disability and
said insured die before there have
been 240.mOnthly payments made, the
of the 240 will be paid to
the named beneficiary.
The proposed new forms of govern
ment policy contracts will contain
most of the features Of the standard
policies such as grace for payment Of
premiums, cash values, which will be
1T the end of each year, as well as
Oan values, paid-up and extended in
Surance, with the proviso of dividends
should there be any earnings or saw
ngs from which to pay dividends.
Endowment policies, as well as full
paid policies, may be settled for in one
sum instead Of on the monthly plan,
put policies maturing as death losses,
previous to being full-paid, must be
settled for on the plan Of $5.76 per
month per 100000, however, all ex-
Derience shows that such plan proves
o be the best provision for the bene-
iciary.
0fhar eo,frooo will he onanad ar