Trench and camp., 1919-04-17
QUESTIONS AND ANSWERS CONCERNING INSURANCE

-. After I have converted my policy will
IL be carried by the government?
AnA-Yes.
NO NEW PHYSICAL EXAMINATION
1G How long q time do I have to make
up my mind as to whether / wish to con-
Ans-Five years after peace is declared,
providing you Keep your present insurance
IT. Do I receive credit for the premiums
Ans.-No. Ysu purchased protection at
net rates and you have had the beneft of
that protection You also secured the priv
line Insurance. to be issued by the United
States Government.
IL. Must pass q physical examination In
order to convert my policy?
Ana-No. Any officer or man who con-
tinwes to pay his premiums may convert his
policy irrespective Of his physical condition
and irrespective Of the work in which he In
Of the service. The only physical examina-
tion you will ever have to pass in the future
In mentioned under Question ., due to your
failure to pay premiums.
~. To what forms may / convert my
policy?
Ana-u) Whole life policy: (2), 20 pay
hfe policy; lsl. 30 pay life policy. co. 2s-
year endowment; 80. 30-year endowment;
,(0l. endowment maturing at age So.
10. What 10 the difference between these
SAX kinds OF policies!
Ana-(D IL o policy which the pre-
mium 10 payable every year during the life
Of the insured.
CD Is q policy on which the premium is
payeeie for twenty years only. then the
(sl Is policy ON which the premium 10
payable for thirty years only, then the policy
60 Is a policy on which the premiums
are payable for twenty years and at the end
Of the twenty years tina whole amount Of the
policy is payable in lump sum to the
(s) Is policy on which premiums are
payable for thirty years and at the end of
that time the whole amount Of tho policy
ts payable in lump sum to the insured.
CO. Is policy maturing at age e. The
premiums are payable until the insured
becomes sixty-two. at which time the policy
Is paid up and tho whole amount Of the
policy Is payable In a lump sum to the
insured.
In the endowment policies, namely. 4. s.
ana above, the policy Is payable in INSTALL
ments to a designated beneficiary IL the
inquired dies prior to the expiration Of the
twenty or thirty years or before reaching
the age Of 62.
WHY RATES INCREASE
FL Will the rates on these policies be
higher than rates on my present policy7 If
so, why?
Ans--They will be higher because you
purchase a level premium policy under
which the rate Is determined by the age at
entry and remains hxed subject to reduc-
tion by dividends; 1t therefore has cash
valuex. paid-up values, loan values and ex-
tended insurance values and offers most
attractive method Of saving. large part
as though you deposited the money In q
savings bank. For example,:
(1\ At age 25. On whole life policy Of
s1o,ooo the premium is slss4o. and Of this
amount $7e30 goes into the cash value the
first year. that your insurance actually
costs you the difference, or $7610. In twenty
years you pay twenty times $152.4O. or $3,048
ana your cash value at that time IL 81, 130 40.
So that your insurance actually costs you the
difference, or $s17.6 so, or an average Of $46 SS
per year. Dividends will either reduce the
cumulate, will increase your savings fund.
CD On an endowment at age 81. Policy
of $40, eco issued at age IS the premium 10
SO. which You pay for thirty-seven years.
but on this form your savings account is
still greater and your cash value at that
time will be $4,000. You have paid 81
times $19S5o, or $7344.6o. and your actual
profit 10 u, so to which you must add your
II you have taken the option of
leaving them to accumulate at interest.
t5) On twenty payment life policy Of
pay for twenty years Twenty times s226. 90
is $4,612, but your cash value at that time
will be $3.50 so that your insurance actually
costs you nothing as yonr cash value, or
have paid in premiums. Like the life policy,
your dividends either reduce the amount you
pay or increase your savings fund at the end
Of the period.
%. What are C) loan values. (2) cash
values. CD paid-up. and "a extended insur
ance rights?
Ans.-G) A loan value means that the /
insured has the right to borrow from the
government on the security OF his policy. |
He may secure this loan at any time after |
his policy has been in force for year, !
provided premiums have been paid up TO
date.
CD Cash value means that the insured |
has the right TO surrender his policy to the |
government and receive in return the saw |
Ing fund known as the cash value"
CD A paid-up policy means that the |
Insured may at any time surrender the |
in exchange policy for a lower amount |
W. hich Is paid up and on which he will |
pay more premiums. |
90 Extended insurance means that IL the |
Insured lapses hts insurance after IL has |
been converted he will be insured for the
specified period and IL death occurs within |
his period the policy will be payable to his |
23. Will my converted policy have all the
usual provisions contained In policies issued /
1y regular insurance companies?
Ans-Yes. The government will give you
- good a policy az you can secure from any |
regular company and Il will give IL to you
1t rates lower than can be secured by men |
who have not been in Federal service.
POLICIES NOT AssIGNABLE
a. May use my policy as collateral 1T Q |
,ank?
Ana-No Policies are non-assignabie. but /
hey are also incontestable, non- taxable and |
rec from the claims Of creditors
IS. VIII converted policies be '1participa-
ing" on which dividends will be paid?