The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1919-02-28
SOME FACTS CONCERNING.
GOVERNMENT INSURANCE.
Uncle Sam Now Ready to Convert
Soldiers and Sailors Insurance
Into Other Forms

The Echo is in receipt of detailed
instructions regarding the conversion
of Soldiers and Sailors insurance
into other forms, which is reprinted
herewith. A glance over the rates
should convince every policy holder
that he should never give up his in
surance.
1. Present certificates are one year
renewable term contracts, and may be
continued as such for period of five
years only, from the declaration of
peace.
2. At any time during this period
of five years the term policies may be
converted without medical examina-
ton into any one of the following six
forms: Ordinary Life, Twenty-pay-
ment Life, Thirty-payment Life,
Twenty year Endowment, Thirty-year
Endowment, and Endowment matur-
ing at the age of sixty-two. If the
term policies are to be converted as
above, the conversion must take place
during the five year period mentioned.
8. These forms will be the only
ones written and the insurance will be
carried by the government at rates
considerably lower than private COM
panies.
4. The rates are net rates based
upon the American Experience Table
of Mortality with interest at 3h per
cent figured upon monthly basis.
All expenses of the bureau are paid
by the government, thereby permitting
the net rate. This means that the
monthly net rate will average Is per
cent below similar rate in partici-
pating private companies.
5. Policies will contain waiver OF
premium and total disability clause,
making the policies payable at any
time that the insured becomes totally
and permanently disabled, regardless
Of his age. No policy in private
company contains a similar clause
running beyond the age of sixty-five.
Al average rate of 8 per cent would
have to be charged for su'h police
in private companies.
In comparing above rates with those
of private companies an average of
IS per cent of the premium should be
added to private company annual
rates-10 per cent on account of
monthly premium basis of government
policies, and per cent on account of
Government Disability clause. If an
annual premium is paid to private
company and death occurs during the
year no return of premium is made.
If an annual premium is paid under
government policy and death occurs
all of the premium except current
month is refunded. 1t will, therefore,
be noticed that the government rate
under converted policies will average
about 80 per cent below the rates of
participating private companies. The
low rate provided by the government
and the special disability clause is
granted only to soldiers and sailors
holding regular term policies issued
under the War Risk Act, the govern
ment assuming all expense.
7. Converted policies will partici-
pate in dividends earned from any
mortality or interest savings. These
dividends may be used to reduce prem
iums or accumulate at compound in
terest.
8. All policies are non-taxable. in
contestable and non-assignable.
9. Cash values under converted
policies are provided beginning at the
end of the first year, being the full
31a per cent reserve values. Loans
may be made up to ga per cent of the
cash value. Participating, paid-up and
extended insurance is guaranteed in
all converted contracts.
10. All policies are payable in event
of death, only in 240 monthly install
ments. Endowment policies are pay
able in cash at maturity if desired.
II. A bill before congress extends
the permitted class of beneficiaries,
and provides for full payment to es-
tate if no beneficiaries in permitted