The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-04-23
Copyrighted by The DAILY
WORKER, 1929
By CHARLES YALE HARRISON
ARTICLE XII.

ARTICLE XII.
Because they have a bearing or
what follows it is advisable to men
ton once more the startling facts
relative to industrial" (weelSly pay
ment) life insurance lapse statistics
1t must be remembered that where
as "ordinary" life insurance policies
have a loan value after being two
years in force, industrial life insur-
ance policies have no loan values
whatsoever. An industrial" policy
holder has been paying upon his pol
icy for the past twenty years, during
which time he may have deposited
upwards of $500, yet, if he is in des-
perate circumstances, and requires a
loan, the big Four" will not grant it.
Get Little.
In order to secure cash on week
~ payment life insurance policy, it
must be surrendered. The available
cash is usually about one-third of the
total payments made during the pay
ment-period. When the policy is sur
rendered for its cash value, it is au-
tomatically lapsed by the company
and further protection, such as it is,
ceases.
Ballyhooers for life insurance never
fail TO stress the point that life insur-
snee is great investment. Save for
your old age. 979e Of American
workers ara destitute at age IS, they
say. They quote horrible examples of
men VINO failed to make provision for
their old age and who are now Ian
gushing III the poorhouse.
The claim is not being put forward
il this series Of articles that the prin-
ciplo OF lifs Insurance is not good
one. On the contrary, it is one of
such great merit and OF such great
social significance that it should not
be LEFT in the hands of the swindling
Wall Street financiers, who fatten
upon tho ignorance and credulity Of
10 million workers; inviting victims
of the "Big Four" weekly payment
life insurance combine.
Rates Too High.
Certainly lite insurance is a good
thing, but not at the present rates
which are more than three times too
great for the benefits paid.
Certainly life insurance has a great
social significance but not in the
hands of the present Wall Street di-
rectors, who now control the so-called
mutual companies 10 the detriment Of
the policyholders' interests and to
their own ACKNOWLEDGEMENT and profit.
Consider the question of weekly
payment policy lapses. In the year
1926, one and a half billions of dol
lars Of industrial" insurance ter
minated on the books of the "Big
Four"
OF this enormous termination only
99s were paid in death claims. One
percent (196) of these examinations
we're paid as death claims.
After all the propaganda about saw
ing for ones age, we discover that
the policy conditions are so harsh
that only ia of all terminated poll
cies are endowments. If your agent
ever tells you to save for your old age
via a weekly payment endowment pol
icy, tell him that you can find bet
ter method than doing it with his
company.
Most Policies Lapse.
The above percentages, startling
though they may be, are as naught
cnuaOarad NTH fha fi0p.,oe on tha
Big Four" weekly payment policy
lapses. OF the total amount Of year
ly examinations 1870 are total loss
lspses. This means that insurers who
are unable to hang on TO their policies
for the prescribed ten years (after
vhieh thev nsyssurrender their poll