Five Mile Beach weekly journal., 1923-01-19
In the New York American

have a wife and young children, I
often have in mind how they would
fare if I were to shuttle off.
Also, like millions of other men, 1
carry a goodly, not to say generous
amount of insurance.
But, again like millions of other
men, I have my doubts as to just how
skilfully my wife would be able to
handle insurance money, since, like
most wives, she has had no training in
selecting investments.
What can you or / do about it?
1 wasn't sure until yesterday.
Now l know what I'm going to do
Perhaps it may convey a suggestion
to you.
In a recent advertisement l noted
a reference to a booklet, 'The Modern
Insurance Trust" issued by the Ma
tional City Bank of New York. l got
a copy in the hope that it would solve
my problem. 1t has-or rather will,
for I am going to act right away.
Did you know that life insurance
is the largest business in America?
And did you know that Investigations
made by insurance companies reveal
that most of the millions paid out by
them every year to widows, children
and estates is either entirely lost or
very largely d~issipated within three
years? OF the hundreds of millions
of dollars scooped in every year by
INSCRIPTIONS promoters and slick
statesmen, quite a large percentage is
filched from widows and children who
have just received money from insur-
ance companies.
1 asked the National City Bank,
which, by the way, is Americas larg-
est financial institution and is more
than ITO years old, to describe for me
and for the readers of this column
very simply what it's new plan is and
does. Here is it's clear-cut, easily un-
derstood reply:
"In every case where the amount Of
insurance is $4,000 and upwards, the
bank will establish an insurance trust
and will administer the funds for the
benefit of the b~eneficiaries, thus as
surfing that the principal will not be
lost and the largest income possible
from safe investments assured to those
who need it.
1.-The plan is simplicity itself. The
insurance policies are made payable
to the bank in trust, and when pay
able the funds are invested in such
securities as are acceptable under the
rigid standards which the bank uses
in buying securities for itself.
ffTIo ;Do~0rto.f nAinf IN how i'm
mind in connection with an insurance
trust is it's great fexibility. OF late
years the insurance companies have
~endeavored to stop the terrific waste
which takes place when money is paid
to beneficiaries in lump sums by using
what is called the monthly income
policy. This was a great step in adj
vance.
"But. the insurance companies can
operate only within narrow limits,
established by the insurance laws,
while the insurance trust can provide
for any conceivable circumstance that
may or may not develop, and can leave
a large degree of discretion in using
such funds with the trust officers of
LllC III IhOoO OlliCSA olS In WIN
have made a life study of conserving
family property. They look after
thousands of details of family man
agement and to the greatest degree
possible actually take the place Of the
head of the family.
"The insurance trust, when an in
~stitution such as the National City
Bank is made the trustee, assures for
your family the collective wisdom of
that responsible institution in con-
serving your estate and in carrying
out your plans. By means of such a
trust o can provide for the educa-
ton of your children along the par
ticular lines you desire, you can pro-
vide them with all or part of the prin-
cipal of your estate at any given age,
and you a at the same time provide
that any unpredictable emergency
calling for funds, such as an accident
or a serious illness, will be provided
for.
Even $4,000 of insurance money,
when properly handled, should provide
for an income of $50 a month for as
many years as the trust provides, and
at the end of that period the principal
would still be intact. For large sums
the insurance trust becomes increas-
ingly valuable. Inheritance taxes
make heavy drains on estates, but in
the case of insurance trusts there is
an exemption under the Federal in
heritance tax of $4,000.
Insurance trusts do not need to be
probated. They come into effect at
once without any legal formalities or
the payment of any court costs or
legal fees. They cannot be contested
as in the case of a will. Insurance
trusts can be established with the
bank no matter where the creator of
the trust lives"
I'm going to get busy right away
If Won haven't already solved this