The labor journal. [volume] (Everett, Wash.) 1909-1976, 1919-07-18
What Kind of a Policy Should
Choose p

Choose ?"
Quite frequently men come to us
and say, 81 want to cut down my
insurance from $4,000 to $4,000.
and-tell me about those Endow-
ment policies"
1t seems that the only kind of in
surance these men think of is En-
dowment Insurance. We do not
want to disparage endowment in
surance; but for the average man
in moderate circumstances, we
strongly urge one of the three life
policies, rather than an endowment
policy. Life policies offer greater
amount of protection in the event
of death or permanent disability at
lower price.
Our reason for doing this is be-
cause an Endowment policy costs a
great deal more than Life policy.
Consequently, If man can only af-
ford a certain amount each month
for insurance, he would have to
apply for smaller amount of in
surance If he insisted on an En-
dowment policy.
For instance, suppose you are
age 20. If you could only afford to
spend say, s11.50 for insurance, it
would be far better for you to take
out an Ordinary Life, 30-Pay Life
or Old Age Endowment, because you
could obtain a substantial amount
of insurance. If you chose 20
Year Endowment policy, you could
obtain approximately only $4,000
insurance.
Quite frequently when we tell a
man that he should have a life pol
icy instead of an endowment, he
says, al don't want to have to die
to win" 1t isn't necessary for you
to "die to win" While carrying
any type of policy, if you feel that
the need of insurance no longer ex
lists, and want your money, the cash
surrender value is always available.
Suppose, on the other hand, you
become permanently disabled.
Should this unfortunate circum-
stance arise, which would you
rather have, $4,000, or a greater
sum? If you take an Endowment
policy you simply cut down the
amount of insurance you could buy
with the amount of money you can
afford, and deny yourself or your
beneficiary the greater amount Of
insurance, which would have been
yours or theirs had you taken out
life policy.
"Why Should I Convert My Wal
Risk Insurance As Soon
As Possible"
One of the most common mis-
takes men make is their belief that
it will be cheaper for them to re-
tain the War Risk Insurance for the
five-year period allowed, paying
the apparently lower term insur-
ance rates, and then convert to tbs
new policies.
AS was pointed out in the early
paragraphs of this article, the net
yearly cost of the new permanent
insurance during any given year is
actually lower than the cost of
War Risk Insurance. The money
paid into the War Risk policy
meets the cost of year-to-year pro-
lection only-a cost which con-
stantly increases. There are no
dividends, no interest accruals, and
no cash surrender values.
Furthermore, a consideration of
possibly more Importance in the
| long run is the higher premium
that will be necessary, due to the
five-year increase in age. The man
who converts to a $4,000 ordi-
nary Life Policy at age 25 will pay
an annual premium or $162.40;
but, should he delay conversion for
five years or until he reaches age
80, he will have to pay annual pre-
MUM of $173.6O for the same pol
icy, a yearly excess of s21.2O.
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