Evening star., 1926-03-13
INSURANCE is BECOMING GREAT
INVESTMENT FACTOR in AMERICA
BabsOn Sees Business and individuals Enormousl,
Aided by the Various Kinds of Policies Now
Offered in u. S.-Commerce i'm Good Shape.
BY ROGER w. BABSON.
Special Dispatch to The Star.

BY ROGER w. BABSON.
Special Dispatch to The Star.
BABSON PARK, Fla, March 1S.-
Next to the preachers. doctors and
| school teachers, probably no persons
do so much real good-aS honest and
| competent insurance statesmen. They
provide for old age, relieve suffering,
and worry. take care of widows and
| orphans, educate children, support the
disabled and do a host OF other good
| things. Were l a young man and for
any reason could not be in the work
| l now am in. / would sell life insur-
| ance. 1t is almost the one thing that
would feel justified in forcing on to
all whom / met, knowing, that some
| day they would thank me. Hence
| must take this opportunity OF advising
all to take out-not a life investment
policy or life gambling policy, but a
| life insurance policy-for every man,
woman and child should be insured.
When 1 was boy. the only life In
surance sold was the whole life policy,
payable in cash at death; but soon
came the pure endowment policy and
| now we have limited payment policies.
single premium policies, combined life
and endowment policies, joint family
policies, educational fund policies,
business insurance policies. group in
surance policies, modified life and
term policies, monthly income policies.
policies with accidental death and dis
ability benefits, and intermediate
policies. All OF this means that
| placing insurance now has become a
profession and business man should
go to an experienced and honest man
W q
The man on a salary may best take
out q 20-payment life: while the stock
exchange gambler should take a single
premium policy. Men in humble cir
cumStances, who desire only protec-
ton, may take monthly income
policy to protect the wife, and limited
payment policy to insure the children
an education--while a yet different
form is advisable to take care of in
Stallment purchases the mortgage on
the home and and automobile, or to
provide against accident. Men of
means-on the other hand-desire
business insurance, bequest or pay roll
insurance-all kinds have their uses
and all purposes are worthy-but what
kind is best for each person is a ques-
ton for expert knowledge.
Insurance Benefits Have Grown Fast.
No conservative insurance man will
place all his earnings into life insur-
ance which shows that even the in
Surance agent himself does not con-
slider it the best investment at all
times. Even life insurance men-like
the rest of us-diversify their earn
ings in real estate, bonds and other Sc
curitieS. On the other hand they can
honestly say that life insurance is
something which every one should
carry for one or many reasons. Espe-
cially is it advisable as a means of
forced saving for those who lack self
control or who have families that are
free spenders. For such, life insur-
ance is probably one of the best 'in-
vestments." 1t is also a good specula-
ton because If you die before your
natural age Of expectancy your estate
gets a higher rate of interest than 1t
could possibly get in any other way
with equal security. For instance.
based on the average experience of
millions of people, a man 80 years old
should naturally live 81 years, 9
months, 10 days, and upon this expect
ancy the price of insurance is based.
If the 35-year-old man lives to Sc
years old, he gets practically the same
rate of interest that he would If he put
his money in the savings bank at 4 per
cent. If he lives to q, longer age than
66, he gets a lower rate Of interest; but
If he dies before &C he gets a higher
rate.
The fact, however, that science,
civic effort, and improved living con-
ditions are tending for longer life,
works material benefits to all policy
holders. This, added to the fact that
insurance money is invested by the
best experts and is most carefully
supervised makes it possible for the
insurance companies to do additional
things which are very attractive. AL
though no insurance company can
beat the law Of averages, as to NOR
tality, risk and interest rates, yet it
can do much for the unfortunate mi
nority who die before their time, and
especially those who meet with acci-
dent. For instance, a man at 80 pays
an average premium of around 5000 a
year for a $4,000 whole life policy
and if he dies at the end of the first
year his estate gets $4,000 on an in
vestment of only 5000. If he cares to
make a contract with the company
that the premiums shall be ended at
the end of 20 years and yet have the
insurance remain in force for his en-
tire life, the average net cash prem
iums would be only about $3.50 a year.
With somewhat higher premium
rate the payments will stop at the end
of 20 years, and, in the case of a
$4,000 policy, the entire $4,000 will
be paid to the insured If he is alive, in
addition to giving him full insurance
in the meantime. This form is called
the 20-year endowment policy. A fea-
ture which many policies give is a.
stated monthly income for life in case
of permanent disability: and also, in
the case of death, a fixed monthly in
come to the estate for a determined
number Of years.
Borrowing on Policies.