The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-07-04

years of life the price of this insur-
ance would be exorbitant In addition
1t contains no dividends 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 and
ordinary life policy the cost would be
this premium does not increase.
Let US tage age Is for example
Cost of ordinary Cost ofago
Cost of ordinary life policy for $l0,-
600 annually, $l52.4O.
Dividends of 10 to 20 per cent of
premiums paid back to you at end of
each year, depending on number of
deaths occurring and interest on
money earned.
In addition if you drop the policy
you will receive refund as per the
following table
At end of one year, $3.50.
At end of five years, $40o.10
AT end of ten years, $8o4.20.
At end of fifteen years, $l465.40.
At end of twenty years, $213O.4O.
At end of thirty years, $3723.8O.
The cash surrender value at other
ages and on other types of policies is
less or more, depending on the age,
type of policy and premium paid
What Are Dividends?
We have explained that under the
legal reserve plan the cost of insur-
ance is averaged. But the premium
charged is in excess of what in all
probability will be actually needed to
pay death claims during the year.
At the end of the year, after all
death claims have been paid, certain
amount of money remains which was
not needed because fewer people died
than it was expected. In addition the
surplus remaining in the hands of the
company is earning interest.
Policy holders participate in these
savings and profits and the amount re-
turned to you at the end of each year
is commonly called dividends. The
per centage of dividends depends en-
tirely upon the number of deaths &C.
curing each year and the interest
earned by the life insurance company
on its money.
What Is a Loan Value?
The new government policies pro-
vide that after the policy has been in
force one year you may borrow 90
per cent of the cash surrender value.
For instance, if YOU took out an ordi-
nary life policy at age rs for $4,000
and wanted to borrow money at the
end of ten years you could borrow 81
per cent of the $8o420 which you
would have to your credit, and the
only collateral that you would need
would be your government life in
surance policy. This money can be
borrowed for as long as you need il
at rate of interest not to exceed {
per cent. IL your death or permanent
disability should odcun before you
have paid back any money you have
borrowed the amount borrowed and
and interest due would be deducted
from the face value of the policy and
the balance paid to your beneficiary.
The New Government Policies.
Under the new plan the government
will issue three life and three endow-
ment policies as follows
Ordinary Life. This is the cheapest
form of insurance issued. The insured
pays premiums until death or perma.
nent disability occurs. Upon death
or permanent disability occurring the
policy is matured and payable to the
beneficiary.
Twenty Payment Life. This is ar
ideal policy for the man in moderate
circumstances. Premiums are payable
by the insured for 20 years. After
that no premiums are paid BY the in
insured or his beneficiary unless dealt
or permanent disability results.
Thirty Payment Life. This is the
same plan Of policy as the INVENT,
Payment Life, but lower in price ant
premiums payable for thirty years.
Twenty Year Endowment, This Il
an Investment policy. II provides
that you pay premiums for twent,
years. At the end of twenty year
the face value of the policy Is pait
you in cash. II permanent disabilit,
or death occurs before the 20 year
arc up payment Of the face value o
the policy will be made In 240 MONTH,
installments,
Thirty Year Endowment. This is
policy the same rs the above, excep
that II costs less per year and yo'
paw ten years longer,
Rates for New Government Policies
II Is not possible to give all tn
rates at the various ages, but to Civ
you an idea of what the new. govern
ment rates are we give a few below:
Rates are for $1,000 insurance, prem
iums payable monthly.
Age Ord Copy 30-py 20-yr 30-yr OIL
Life Life Life End. End, Ag
20 Sis 81 IS $l.40 1891 500 $l.4