Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-22
VETERANS NOW SHARE
In INSURANCE PROFITS
More Than $28,OOO,OOO Paid by Bureau
in Dividends $4,000
Policies i'm Force.

A s the time that has elapsed since
~ the armiStice moves forward to
"A its twelfth year, the United
4 4 States still conducts one of the
biggest insurance businesses in
the world. Not only Is it one Of the
largest, but one of the most successful
as well, for the Government has dis
tributed through the Veterans Bureau
more than $28, 000, 900 as dividends to
the ex-Service men and women who
have converted their wartime insurance
policies and who now share In the
profits Of the enterprise.
Under the farseeing dictatorship Of
Gen. Hines, the Veterans Bureau has
given World War veterans as cheap In
surance as they could get anywhere,
and as a result of the successful steward
ship holders of policies may look con-
fldently to the future for larger divi-
dendS.
On October 81 the number Of policies
outstanding was 649,417. The potential
value of these policies was $3,O56, 1877, 1853.
All told, the Government has received
in premiums q little over $427,174, OO9.
At the present time the Veterans Blu
reau is paying on 1889 claims, in
GLIDING those arising from deaths in
the war. OF the claims handled, about
$4,000 provided for lump payments.
The others were payable over a period
Of years, under the options granted to
those who took out the insurance.
Beginning Of Project. 4.
In 1917 and 1918, the United States
called about 100000 of its citizens to
military service. The call was one that
carried unusual risks. Commercial COM
panies would not meet the extra hazard
OF war without q large increase in pre-
miunS. For practical purposes, the
soldiers and sailors were uninSurable,
the premiums being beyond the means
Of the enlisted men.
So the Federal Government decided
to provide insurance for the service
men. Insurance was issued In amounts
up to $4,000 at few dollars a year
per thousand. The insurance was not
mandatory, but officers did everything
in their power to induce the men un-
der their command to take advantage
Of the protection.
The premiums were deducted from
the pay Of the officers and men. Regi-
mentS We'd with regiments in the total
insurance taken out and division with
division. Every division had its insur-
ance officer, and armed with complete
surance policies, these officers sold"
their divisions, just as the agents of a
private insurance company SELLS" his
clients.
U. s. Shares Burden.
Few soldiers and sailors refused to
avail themselves of the protection thus
given so cheaply. The Government
paid all the costs of administration, all
the overhead; and the term insurance
granted during the war to the Army
and the Navy cost the Government
T. -
the amount 1t received in premiums.
Then came the armiStice, and the
soldiers and sailors returned to civil
life. The Government, however, de-
cided to continue its insurance business
for the benefit Of the ex-Service men,
and the Veterans Bureau worked out
scientific plan for the conversion of
the wartime insurance. There was
one difference, however, between its OPP
erations in peace and its operations in
war.
In peace the insurance business was
to be organized in such q way that 1t
would pay for itself. with the exception
that the Government paid the admin
istrative costs. Otherwise, the business
was put on a commercial basis. Pre-
miums were to be sufficient to take care
Of the expected mortality and reserves
were to be built up to cover claims for
death and disability.
Act Was Amended.
Congress amended the World War
veterans act in 1928. extending indefi-
nitely the period in which applications
could be filed for Government policies
by those entitled to them. The privi--
lege had expired on July 2, 1927, except
for new entrants into the service-that
is, men in the Regular Army and Navy
and cadets at West Point and Annapo-