The Washington times., 1931-08-25
HOW To PROVIDE
LIFE INCOME
2. EXPLAINED
Terms of Retirement Policy
Protecting Insured After
Age so or SIS Are Detailed
BY FRANK F. LOOMS


To the young man in his early
twenties, the age of go or 65 years
looks long time off. To men Of
IS or 40 years it seems a short
time ahead.
A man likes to feel that by the
time he reaches so he will have
made financial provision for the
remainder of his life. And yet,
according to statistics, there are
about 100000 persons in the
United States past IS years Of age
who are dependent on others for
support.
Retirement Income Plan
1t seems almost unbelievable
that many of those who reach the
age Of IS, and some who have
earned large salaries. for many
years, fail to maintain themselves
for the balance of their lives. Pos.
sibly this has been due to lack Of
a practical self-pension plan as
well as to a blind optimism that
the future will take care of itself.
1t is recognized that the aver.
age length Of life is increasing:
people actually live longer, and it
is during the productive years Of
a mans life that he must prepare
for the later years. the retire.
ment age. Systematic savings
during the most productive period
OF life is essential to secure finan.
cial independence for the wears
when you are no longer able to
earn money.
With this objective in view, the
LIE insurance companies today
are issuing retirement income
policies that will absolutely guar.
antee a monthly income to the in.
sured. after reaching a designated
age. say go or IS years, for as long
as he may live, through modest
deposits set aside each year out Of
his earnings.
Terms of Contract
A retirement income contract.
recently put on the market by one
OF our largest life insurance com.
panles. and written on a similar
plan by several companies, pro
vides as follows:
When the insured reaches the
age OF 6S years, he will receive
$1OO a month for az long as he
r,-y live.
II, however, he should die be-
fore reaching the age Of IS, at
anytime even If he has made only
one payment to the company.
$1O0 a month vii be paid to his
estate. or named beneficiary, for
a period Of 10 years.
Sho'l' tn insured die after
reaching the age If 65 years. but
before the income Of 500 a month
has been paid to him for 10 years.
the ompany will continue the
payment Of the monthly income
for the balance of the 10 years to
whomever he may designate.
Cost Of Policy
In other words, the monthly
come of 500 is certain for 10
years. If the insured does not
live to receive this guaranteed
income - the full 10 years, or .
tota! payment Of $4,000, the
balance will be paid to his estate
or named beneficiary. But the ,
most valuable feature of the con-
tract Is that this annuity of 500
a mcnth Is absolutely guaranteed
to the insured, after age 65, for
the rest Of his life, no matter how
long Il. may live.
Such a contract. based on age
:: would require an annual
deposit with the insurance com.
pany CT about $424.O0. These
paym 2nts cease when the insured
reaches the age of IS. This yearly
payment, however, to the o=S.
pany may be reduced each year
by di'idendS. While such dtvi.
dc is are no. guaranteed, it is
safe to figure from past experience
ttct they would average not less
than about 500 year.