The Washington times., 1925-08-22
INCOME PLAN Of
INSURANCE
ADVISED
Morris Simon Finds Widows
Are Often Incapable of
Handling Lump Sum
By RICHARD HATTON

In purchasing lie insurance one
should carefully consider the real
purpose for which 1t is bought, be-
fore deciding on the type of inspr-
ance to carry,3 said Morris Simon,
counsel for q number OF insurance
companies, department stores, re.
tail stores, and various national and
local corporations today.
Mr.. Simon. who is an expert on
insurance matters, continued:
"One frequently hears the state.
ment made by policy holder that
he carries a certain amount OF in
slrance. This is not the solution of
an insurance problem. Insurance
companies write. many forms OF
policies for varying needs, and
when purchasing life insurance the
purpose to be achieved and not the
amount to be carried, should be
. the paramount consideration. !.
How Shall II Be Paid?
Another important question to
Be considered with relation TO life
insurance is the manner in which
the proceeds shall be paid. There
has been a growing tendency Of
late to leave life insurance pro-
eeeds width the insuring company
subject to the payment of month
ly or annual income to the bene-
fieiary, instead of the payment Of
s Iurnp. sum. The benefit of such
an assured income is shown by an
examination of statistics in regard
to settlements made In lump sums.
In great many cases life insur-
alce proceeds are depleted within
two years after payment to the
Beneficiary This may sound iIl-
credible, yet, IL one considers for
4 moment, the reasonabIeness OF
such a statement becomes apparent.
Most insurance is taken for the
protection of our women depend
entss -
In many cases such dependents
are not able to cope with the
Intricate business OF finance. In
many instances Of lump sum pay
ments widow. in the midst OF
her grief, is expected to be able to
sintellieently invest large sums OF
1t is unfair. for her to be burdened
IN This manner and then to be
criticized for having fallen Tor the
lure of large returns and other
benefits suggested by investment
In worthless stock and other Sc
.curitfes. Then again she may be
Induced to set up in. business some
relative or other person, who may
with the best intention IN tne
world lose her money.
Cannot Take Chances
I'm the course of my practice in
handling probate matters, the IN
ability of women inexperienced In
business, to continue the business
of deceased husbands mas been
forcibly brought home. The most
difficult thing for me to impress
,Inor them is the fact that the
deeedent. while a living earning
unit. could afford TO take chances
that the widow cannot afford 10
s Therefore. in purchasing life in
suraY,ce consider carefully before
-a.riy.e tn the agent Make it pay
able to nv wife" Nit purchasers
az life insurance give too little at
tention to the fact that sooner OF
later death is sure to oVertake
them. They are so much interested
in life that death is far from their
mind-yet the every purpose OF
carrying life insurance may De de-
feated by neglecting to give just
. little consideration to the subject.
Most life insurance. agents are suf-
to advise your properly-while your
banker and your attorney are splen-
did sources OF information not to
be overlooked.
Buying life insurance Is serl-
Gus problem-don' treat it lightly,
advised Mr.. Simon.
Income Insurance Best.
Income insurance is real protec-
ton and to my mind provides for
the home women in a much better
and safer manner than lump sum
benefits. She is assured of an in
come for life without the hazards
of speculation. She receives the
stated income regardless of the con-
dition Of business in general during
good eras as we'll az during panics. :"
Mr.. Simon also pointed out the
advantages of income insurance in
providing for children. Some far
sighted citizens are providing small
incomes for their sons as to carry
them through college, with a pro-
vision for a lump sum payment
after graduation to start them in
business. Frequently the balance
is to be paid to them in the form
of income, or perhaps there is a
provision for a second lump sum
payment to give them another start
in business, at say age thirty, in
case their original nest egg has
been lost.
I'm the case of daughters a lump
sum payment at marriage, sort of
dover. is provided together with a
moderate income that will provide
for her during her life time, giving
her in a fashion. an independent
Income from that of her husband. F."
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