The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1922-05-04
GOVERNMENT INSURANCE


Bureau, reveals .some interesting
facts and figures. The Veterans of
the World War are carrying insur-
ance with the Government aggregat-
ing approximately $4,000, 100000.
Those veterans who have converted
their War Term Insurance into one
or more of the six forms Of Govern
ment Life Insurance will come in
for the dividends apportioned for
1922, which amounts to $1,75O,0OO,
according to the statement issued by
the Director. These dividends on
$4,000 policy range rom $3.50 on
q first year dividend on an Ordinary
Life issued at the age 20 to as high
as $21.3O on third year dividend on
q 2O-Year Endowment issued at age
60. Another interesting. point
brought out in Col. Forbes statement
was that without personal solicita
ton on the part of the U. S. Veter-
ans'Bureau approximately 600, 600
service men were continuing their in
surance either as yearly renewable
term or converted insurance. The cost
of administration and the excess
losses due to the extra hazards of
Military or Naval service are borne
by the Government.
Yearly Renewable Term Insurance
against total permanent disability OF
death was provided by an Amend
ment to the War Risk Insurance Act
approved October 6, 1917. This in
Surance was issued at "a premium rate
computed for payment on monthly
basis, according to the American Ex-
perience Table of Mortality with in
terest at three and one-half per
centum per annum. The Act pro-
vided that the Government would
bear the cost Of administration and
the excess mortality due to the haz-.
ards of war.
The Act also provided that the
Term Insurance could be continued
for FIVE years after the termination
Of the war as declared by proclama-
ton of the President Of the United
Stats. This termination of the war
was declared as of March 8, 1921 BY
Joint Resolution, consequently all
Yearly Renewable Term WAR Time
Insurance. will cease on March 8.
1926, and if protection is desired be-
yond that period, it will be Necessary
that the Term Insurance be convert
ed into one or more of the forms of
level premium insurance Converted
insurance) provided.
Applications for Yearly Renewable
Term Insurance were submitted by
approximately 100000 persons in
the service, aggregating total of
about $4,000. 100000 Of insurance
approximately $4,000 each. Shortly
after the Armistice was signed or
November II, 1918, rehabilitation
began and the men in the Army, Navy
and Marine Corps were rapidly dis
charged, so that by year later the
number of men in the service had
been reduced to very low number
compared with the original number
Of entrants. The average age OF
those in the service at the time of
theArmistice was under "a years an6
the signing Of the Armistice in the
minds of most of them eliminated all
need for insurance. The danger was
then over from their viewpoint and
it is extremely improbable that the
major portion of the original amount
of insurance could have been contin
ued, even if personal solicitation
methods had been used. Very young
and healthy men see little need for
insurance and when they do pur-
chase, it is usually in small amounts
The fact that they had finished their
tenn of service in a dangerous &C.
cupation and were returning to civil
pursuits, the payment of insurance
premiums seemed useless expense
Notwithstanding these facts anf
the further fact that the Government
did not employ the method of per-
sonal solicitation, there are at this
continuing their insurance, either
as Yearly Renewable Term or Con-
time, approximately 100000 persons
yerted. The total amount of insur
ance represented is approximately
$500, 100000.
The Governments liability under
Yearly Renewable Term Insurance on
account Of total permanent disability
and death is approximately $780,
600, 1000 (commuted value on 31sR
interest basis) and the total amount
of premiums received on this form
of insurance is approximately $780,
O0O, 900; therefore, the committed
value of the claims exceed the amount
Of premiums received by approxi-
anately $500. 900. 900, and as the bene-s