The herald and news. [volume] (Newberry S.C.) 1903-1937, 1919-04-01
QUESTIONS YOU WILL ASK
ABOUT GOVERNMENT
INSURANCE.

(Retain this article for your own in
formation.)
"My Converted Policy"
I. What does conversion mean?
Ans. 1t simply means that you can
change your present government pol
icy into another kind-Real Life Ir
surance.
.. When can I make this change
Ans. In a few weeks and up to five
years after peace is declared.
8. After have converted my pol
icy, will it be carried by a private
company?
Ans. No. The government is 10
the insurance business for you if you
will continue to pay yoHr premiums.
4. When is it advisable for me IT,
convert my policy?
Ans. On your converted policy you
pay the rate for the age which you
have reached at the time you cor :
vert. Hence the sooner you convert:
the lower the rate on your premi" m
for the policy. The best advice is to
convert Immediately upon receiving
from the government a notice stating
that conversion is possible
;. Do I get credit on my converted
policy for the premiums which I paid
on my original policy?
Ans No. You bought protection
with those premiums and you have
received that protection.
s. Must I pass a physical exanl;-
nation in order to convert my policy?
Ans. No. Any soldier or sailor who
continues to pay his premiums may
convert his policy irrespective Of his
physical condition and irrespective Of
the work in which he is engaged at
the time Of conversion. The only
physical examination which you viii!
ever have to pass in the future Is the
one mentioned in regald to reinstate-
ment of your policy If it has fspsed
due to your failure to pay premiums
Z. TO what forms will be allowed
to convert my policy?
Ans. There are six kinds
/. Annual Premium Policy.
.. 20 Pay Life Policy.
3. 80 Pay Life Policy.
4. 20-Year Endowment.
5. 3O-Year Endowment.
s. Endowment maturing at age
of g..
8. Will the rate on my converted
policy be higher than the rates Oh
my present policy, if so, why?,
Ans. They will be higher because
you purchase a policy which has more
privileges in it l. e. Cash value. loan
value, paid-up, and extended insur
ance rates. But these rates. namely
rates on converted policies. will he
from 25 to 35 per cent lower than the
rates for similar policies in private
companies. The reason that tie go7
ernment is able to sell You this in
sUrance cheaper than the private
companies is that it bears the entire
expense of running the business and
gives you the benefit of the net cost
CT the insurance.
9. What are (D loan values. ~
cash values, (3) paid-up. and (Q
extended insurance rights?
Ans. % loan value means thai
tEe insured has the right to secure
from the government a loan on the
security of his policy. He may Sc
cure this loan at any time after his
policy has been in force for one year:
provided premiums have been paid
Up to date. But the amount that be
borrows from the government bears
interest at the rate of 6 per cent The
which he can borrow is stated
ir the policy.
(2) Cash value means that the i'll
sured has the right to surrender his
policy to the government and receive
in return certain amount Of money
known as the cash value"
Co. A paid-up policy means that
the insured may at any time surrend-
er the policy which he is carrying,
cease to pay premiums and receive III
exchange policy for a lower amount
but on which he will pay no more
premiums.
a. Extended insurance means
that if the insured pays his insur-
ance after he has converted it, he
will no inc1,rod for oarfain Snacifipd