The Washington times., 1931-04-21
LOOMS LAUDS
LIMITED LIFE
POLICIES
Enables Young to Ease Up in
Old Age or Cash In If Need
to Protect Family Cases
BY FRANK F. LOOMS

by FhANN r. LOONN1S
With a limited payment life in
surance policy you may establish
a definite goal as part of a sink
ing fund with full knowledge of
just how much it is going to cost
you, and when it will be fully
paid for Under the provisions of
a limited payment life contract,
the policyholder enjoys lifelong
protection, with relief from pre-
MUM payments after a specified
number of years, say 10. is or 20
years.
Premium on limited payment
policies are naturally slightly
higher than for ordinary life in
surance for the reason that the
insured is purchasing whole life
protection within a specified num-
ber of years.
The additional premium &C
cumulated year by year for the
specified time does away with the
necessity for future premium de-
pOsitS.
Ease for Old Age
The advantage of this form of
life insurance, however, is that in
assuming larger premium pay
ments during the active and more
productive years of life, you are
making it certain that when old
age comes you will not be both
cred with payments at a time
when your earning capacity has
in all probabilities been reduced.
And because of the larger pre-
MUM payments, limited payment
life policies have larger non-for
feiture values, loan and cash
values.
At the end of the premium pay
ment period, the policyholder
knows that his insurance protec-
ton will continue for life. The
values in his contract will con-
tinue to increase from year to
year, and in addition, his paid-up
policy will begin to pay him divi-
dends in cash annually.
In the limited payment con.
tract, the poIicyhOlder has really
built up a dual protection. His
estate is guaranteed the face
amount of the policy, and he,
himself, enjoys an equity in his
old age without further payment
of premiums. At any time, that
his need for insurance protection
is reduced the surrender value is
always available for use as an
income during later years.
How Policy Works
AS an example of a limited
payment life insurance policy, a
policy for $4,000 at age 35,
would cost about $4430 a year,
and would be fully paid up at the
end of 20 years. Such contract
would participate each year in
the dividend earnings of the COM
pany, not only during the 20-year
period in which the insured is
paying the premiums, but the
dividends would continue after
the policy was paid up at the end
of the 20 years as long as the
insured may live.
OlNANCA1Oo WOuAN dNCldSS
approximately as follows: First
year, $4,000; second year. $92 80;
third year. $3.50; fourth year,
$99,10; tenth year, $102.70 etc.
The dividends could be used to
reduce the cost each year, or left
with the company to accumulate
to purchase additional insurance,
or to be applied on the policy
SO that it would become paid up
in less than 20 years.
After the third year, the policy
will carry itself automatically
without further payments of pre-.
miumS for about six years; after
the fourth year for a period of
about nine years; after the fifth
year for period of about eleven
years, etc.
In case of accidental death,
this contract would pay double
the amount of the face value of
the policy i. e. $4,000.