Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-08
COUNTRY is INSURANCE-MINDED
BY FREDERIC J. HASKIN.

Reasons for the enormously acceler-
ated purchase of life insurance by the
American people In the last decade OF
two furnish an uncommonly fruitful
field for speculation. Last Summer the
that life insurance In force in the
United States had passed the $780,.
OO0. 0O0, 900 mark. This is . sum total
Of insurance equal to twice the life in
surAnce In all other countries Of the
world combined, despite the fact that
the people Of the United States number
only one-sixteenth of the world popu-
lation. Including every man, woman
and child in the Nation. this means
that every one Is insured for $40.
This Is q theoretical average and
there are millions carrying no insur.
ance whatever, but the proportion
Of the uninsured Is being reduced every
year. A very large number Of children
are insured, as it Is becoming . custom
for American parents to start insurance
policies for infants as soon as they are
born.
A phrase maker would doubtless say
that the Nation has become insur-
ance-minded. But as insurance cost
money there must be other reasons
Primarily. 1t may be supposed. the
rising prosperity Of the country hal
contributed very largely. People have
had more surplus In the last tive
decades than ever before. The saving
idea has been widely advertised By
banks, and as insurance is q form
of saving, which, in case of early
death or disability. proves more
beneficial, efforts Of banks to inducC
savings have been helpful to Insurance.
companies.
Such advertisement has apparently
been mutual because while the amount
Of insurance written has climbed up.
ward at q phenomenal rate, savings
bank accounts have done likewise. II
Is an extraordinary fact, but one sub.
stantiated by ofIlcial figures, that the
Christmas season does not pull down
savings accounts rs might well be be.
lieVed. Rather December tends t.
show gains in individual savings &C.
counts. Even Christmas savings funds
are not universally withdrawn al
Christmas time, A large number re.
main on deposit, the depositOr having
acquired the habit of saving and, al
the end OF the year, deciding to de-
his Christmas spending out of income
and to leave the Christmas savings
fund intact. Then, too, Christmas pres.
ents In the form Of cash and Christmas
bonuses so to swell the savings total.
The reason for the increased insur.
ance cannot be fear of death because
revealed experience Is that the death
rate Is declining, disease Is being con.
quered on all sides and the rate Of
longevity IL increasing. Moreover, thu
American people are not Temperament.
tally . fearful race, anticipating dis.
! aSter.
New Sales Approach.
Probably the intangible idea which
has chiefly stimulated insurance buy.
ing lie the modern type of insurance
policy which gives the purchaser tn,
bene1it while he Is still alive. Put THU
down to innate selfshnesS If you will
Nevertheless 1t is clearly . demonstra
bic fact that the great growth in in
surance has been coincident with tn,
general introduction of the endowment
type Of policy by the big companies
Under this plan Q man may pay up Z
policy in his late, middle or early ole
age depending upon the individually
point Of view upon the life span) and
while still living, enjoy with mis- family
q regular, secure income.
Although endowment insurance i
relatively new, 1t Is worth noting tina
even now so per cent of dement's ~paiS
by insurance companies is to li,inI
policy holders. Formerly, the purchase
OF insurance, In the hackneyed phrase
had to die to win" Such . prospec
made the purchase of insurance 4
rather depressing businesS--somethinG