Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1922-05-11

Life insurance is now exerting an
influence of far reaching Importance
in the development Of our Nation.
While the services it is thus render
ing are of enormous value, they at
tract little attention because they COW
er, 50 to speak, only the by-products
of life insurance. Let ME explain.
The chief province of life insurance
is to protect the Individual against
the financial injuries that follow in the
train of death. Now, is it conceivable
that any of the by-products referred
to here can be as useful as this? Let
us see.
One of these by-products is the val
lie of life insurance in teaching thrift
to individuals, thus strengthening the
Nation composed of these individuals.
If it be true that life insurance is
the best of all teachers and promoters
of thrift-and it is-then the extra
ordinary Importance of this by-pro-
duct will be obvious; for everyone
knows that most of the ordinary
schemes for the promotion of thrift
are Ineffective and disappointing.
Money Lies Idle.
Money laid aside for investment in
ordinary ways usually lies idle, or is
spent to relieve temporary embarrass-
ment, or is sunk in business ventures.
Multitudes of people with praise
worthy motives start savings bank ac-
counts. But they soon tire of making
deposits. Or, if deposits are made and
some pinch comes, the money is with
drawn and spent.
But the man who agrees to deposit
a specific sum periodically with life
insurance company, enters into con-
tract under which these deposits be-
come obligatory. And although he is
free to stop making them he cannot do
so without sacrifice and without break
ing his agreement. Consequently a
pressure is exerted which strengthens
his purpose and aids him in fulfilling
the obligation he has voluntarily as
sumed
In addition to this, he is taught sys-
tematic habits of saving. His pay
ments fall due at regular intervals.
Whenever he is forgetful or dilatory
he is reminded of his obligation and
aided in meeting it. There is no other
method of saving, moreover, that is as
convenient and easily carried out.
Small Savings.
1t must be noted also that the small
savings of innumerahle individuals
flow in tiny rills into the great invest
ment reservoirs of the insurance COM
panies. Thus, funds which would 9TH
erwise be wasted or lie idle are used
to develop the industries of the nation.
Mailed ous people have sometimes
asserted that the companies hoard
the money received from their policy
holders. The reverse of this is true.
The companies are paying every year
III ueaCh clalms, matured endoWmentS,
dividends and other benefits, quite as
much money as they are taking in. In
addition to this they are constantly
investing their funds in the different
States, and are thus aiding in the de-
velopment of the industries of the
country. Note what Lawrence F. Alb
bot of the Outlook has said in this
connections:
"The American public does not yet
even begin to realize what the life in
surance companies have done in the |
way of enabling the individual citizen
to save his money and to put it to |
useful work, not only in promoting his
own prosperity but also in developing
the resources and the general welfare