The Washington times., 1930-08-11
COLLEGE FUNDS
MADE CERTAIN
BY INSURANCE
BY FRANK #. LOOMS

money seems to be going back to
families that need it, although
there Is an increasing tendency to
protect large estates and business
interests whose success is largely
dependent upon certain indivi-
duals.
America undoubtedly dominates
the life insurance business of the
world today. The amount in force
in the United States and Canada
Is approximately three times as
great as in all other countries Of
the globe combined and the vol
urne written in these countries dur
ing the past two years is probably
in excess of the amount in force
in the rest of the world put to-
gether.
The protection feature, Of
course, is the main incentive with
most policyholders, but investment
value appeals to more and more
people each year. The knowledge
that ones family is not only safe
guarded financially. but that
through this method he may edu-
cate his children and provide for
a comfortable living in later years,
whatever may happen, Is source
Of great satisfaction.
To provide for child's future
Is the most important function Of
life insurance. In a pinch a
mother may work in case Of the
premature death of the head of
the family but not so in case Of
q small child; he must depend on
the good will of others. It costs
nearly $500 to raise the aver
age child to age 18. Food rep
resentS $2,755 of that sum and
clothes over $4,000. There is a
tremendous financial responsible
ity in raising child to matur-
ity, and if 1t seems a burden for
a father it will be even a greater
burden for a widowed mother /;
$40 to $12 a month spent in life
insurance will guarantee that the
responsibility of raising a child
will not turn into burden for
the mother in case death claims
the father.
It has been many years since
q college education was regarded
as the prerogative Of the rich.
The average man now looks upon
it as necessity for his child
and undoubtedly the improved ca
pacity which 1t gives is equalled
by the larger opportunities re-
Sulting from adequate college
training. 1t is. hard to say who
appreciates its value more-the
parent who is himself a college
graduate or the parent who real.
lied the lack Of it when waging
his stern fight for success with
out this educational foundation
to his career. Granting it's de-
STABILITY, there is only one prob
lena anvolved and that is the fl
nancial ability to meet it. This
problem is twofold. Mainly, the
parents chief anxiety is the fear
that he will not live until his
boy or girl has reached the col
lege age. The second conSidera-
tion is that, in case Of his sur
vival until the child reaches col
lege age, his financial circum-
stances. may not then permit the
outlay.
Both of these problems find
their solution in the educational
endowment life insurance policy.
The life insurance companies
were quick to see a real need for
this class of insurance on which
the premiums depend upon the
parents age, the present age of
the child and the college age de.
termined upon for the annual
college income to commence. If
the child should not live to col
1ege age, the parents deposits
with interest are returned to the
parent the inSured. If the lat.
ter should die before the child.
for whom the college policy is
taken out, and the child itself
should subsequently die, before
the college policy guarantees
would operate, the benefits could
be granted to another member
OF the family or revert to the
estate of the parent.
some companies issue double
contract providing for an anual
income for four or five years,
together with monthly income
for the same period. The annual
income will pay for all college
fees, books. ETC., and the monthly
income will pay for the. students
keep while at college. For in
stance, father. aged 35, wishes
to provide for q boy, now 8,
guaranteeing a college education
at age 18. He could take cut a
policy paying 5000 a year for four
years covering college dues and
an income of $40 per month for
four years to cover the personal
expenses OF the student. This
could be purchased for an annual
deposit of about $257.30. These
deposits would carry annual divi.
dent returns which could be used
to reduce each deposit or allowed
to accumulate to increase the col
lege income or to pay the same
income for a longer period than
guaranteed, If the parent insured
should die after one deposit has
been made to the life insurance
company, the payment of the in
come at the age specified for the