Arizona republican., 1919-07-04
.HON TO CHANCE WAR R|SkP POLICY
 II OLD LINE ONE
No Soldier Need Lack Full Information In Regard to the Transfer-Literature is Sent to Him on Request

Many returned service men are talk ing advantage of the governments of fer to convert their war risk insurance into old lne policies, but there has been a general lack of specific knowledge concerning the governments plan.
 Victor H. Harding has been appoint ed by the American legion in Arizona to look after the insurance interests of members and to aid all service men in insurance matters. Blank forms for conversion can be obtained by writing him at S20 North Central avenue. The war risk insurance bureau has sent out literature giving detailed informa- tion on all phases of the question. This literature can be obtained from V. H. Harding and from the Frank Luke Post, American Legion, or the Red Cross in the war work building. There has been failure on the part of some to understand the increase in premiums of the converted insurance over those of the war time insurance originally issued. The increase, it is explained. is due to the fact that the term insurance premiums bought only mortality protection without policy maturing value or guaranteed value of any kind except in the case of the in sured's death.
 Premiums in Three Parts
 Insurance premiums may be approxi- mately divided into three parts, one to offset the death claims for the period which the premium covers. a second to be set aside as a reserve for the pay ment of maturing policies and to cover the cash value of all policies, and the third to pay expenses.
 For the war time insurance the gov ernment charged premius to cover only the first part and the rates were based on peace time mortality rates without regard to the extra hazard of war or the influenza. The converted policies will have maturing and cash values against which the government has to set aside a reserve. The premiums therefore, must cover the reserve as well as the charge for mortality pro- lection to the insured. In neither the old nor the converted form is any charge made for expenses, which will be paid from the national treasury.
 For that reason premium rates or government insurance are from 20 tc 50 per cent lower than on similar in surance in commercial insurance com. panies. For example, 20-year endow- ment government insurance for age z costs $39.10 per thusand annually. Fol the same the New York Life Insuranc, company charges S49.11. There is saving of approximately 20 per cent l, The difference is due to the fact tha , the commercial company's premium must cover expenses. In the cheape lines of insurance expenses usual, amount to about one- third of the ore l. miumS.
 Six Forms Issued
 The converted government insuranc will be issued in six forms: ordinar, life, 20 payment life, 30 payment life , 20year endowment, 30-year endow
 ment, and endowment maturing at az
 62. These new policies will carry al the advantages of old line policies sucl
 as cash surrender, loan, paid-up lnsur , ance, and extension values. Some spe cial features are: participation of tn , insured in dividends earned from gain and savings; disability benefit; free com from conditions as to residenc ct
 travel, occupation, military or maya
 service; no medical examination poll , cy unassignable, nontaEabie and ire | from claims of creditors, Premium ! may be paid monthly, quarterly, semi J annually Or annually. Premiums pai
 for periods beyond the month in whic . the death of the insured occurs will b . returned.
 The law provides that war time terr = renewable insurance may be converte
 at any time within five years afte
 the proclamation of peace provided
 is still in force. Premiums on the ol : insurance are payable monthly, but $ days of grace are given, and provisio Q is made for the renewing of lapsed in Q surance. All or any part of the insur r ance originally taken out may be cor . verted Many are converting only ;. part now and continuing the rest undo $ the old plan until they are able to carr r all of it in standard policy form. Rs n strictions as to the beneficiary are n, : changed. being prescribed by the orig e inal insurance act.
 n The insurance upon becoming due 1
 reason of death or total disability f - the insured becomes payable ip 2. 7, monthly instaliments. An option, hoy s ever, is given to the insured or to u V beneficiary whereby in lieu of the ?. = monthly installments, monthly install r, ments varying with the age of the bei Il eficiary will be paid during the ben ficiary's life.
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