The Washington times., 1930-08-04
INSURANCE IS
GOOD ASSET
BY FRANK r. LOOMS

By FRANK r. LOOMS
Partnership or business insur-
ance is the most valuable asset a
firm can have. 1t not only pro
tects each partner from loss in
case Of the death Of either one,
but enables the surviving partner
to purchase and pay the deceased
partners estate for his interest in
the business. 1t also establishes
q banking credit that is unQueS-
tionable.
The carrying Of partnership life
insurance should not be considered
as an expense, but rather as a
bankable asset. The cash values
from year to year are at the CON-
mand Of the firm to use at sny
time either for immediate cash or
as loan. A joint policy Of 2O,OO0
would cost about $3.50 year. In
case of the death Of either part
ner, at any time, $4,000 cash is
paid to the surviving partner.
Cash loans at a low rate OF in
tereSt can be made.
The actual cost Of carrying
this insurance is really not $3.50
a year but rather that amount
less the increase in cash value
each year. For instance, the
fifth year the cash value is ST.
TAO, which Is on increase Of $3.50
on the previous year. Therefore,
the net cost the fifth year Is
only $3.50. Creditors and banks
will view partnership insurance
as the most valuable Of assets as
a basis for credit.
It should be carried in an
amount fully to one-half the
value of the inventory and good
will OF the business. 1t is q
joint policy written by all life
insurance companies and its
great value is little understood
by the average business firm.
Partnership insurance is the only
absolute safety, without sacrifice,
to the surviving partner or de
ceased partners estate. It is not
taxable either by State or Federal
up to $4,000 in amount.
No doubt you have some plan
for paying for your home by
degrees, so that some day inter
est payments will cease and your
home will be your own. You GER
tainly have no idea Of leaving to
your wife the responsibility Of
paying either the intreSt or the
principal.
Are you sure your plan will
work out? Is it proof against fail
ure or is it dependent upon how
long you liye and your ability to
work and to save? You cannot
safely rely upon q continuation Of
your present good fortune. No
body knows what will happen next
week-or next year. You cannot
be sure Of living to pay the mort
gage, but you can be sure that in
event of your death, your wife will
be able to pay it! You can insure
your life for the amount Of the
mortgage.
Long continued sickness or ac-
cidental injury may prevent your
saving money to pay for your
home, but neither can affect your
life insurance nor prevent its pro-
ducing the money due. Should
you be totally disabled, you would
not have to make any more de-
poSitS. Your insurance would re-
main in force, and in addition you
would receive interest on the
amount of your insurance as long
as you were disabled. With life
insurance for the amount of your
mortgage. payable at your death,
you are sure that neither death
or sickness will thwart your plans
for a permanent home for your
family. If you are not living when
the mortgage comes due, your wife
will be in a position to pay it.
But, perhaps you would like to
go farther than that and arrange
definitely for the payment of
your mortgage, not only in case
of your death but in any event.
Systematic saving will produce
the money if you live but that
is downright hard work and
most men fail to do it, no matter
how important the object. Saw
ing by means Of endowment in.
Surance. however. is comparatively
easy and may be depended upon
to accumulate the money you
need on the date you select. With
endowment insurance for the
amount of your mortgage, you
have the satisfaction of knowing
that if you live. you win have
the money to pay the mortgage
at the time you want it: and If
you do not live. the money viii