The Washington times., 1932-09-19
LIFE INSURANCE
IS ADVISED AS
BUSINESS
BY FRANK F. LOOMS

Life insurance is a business to
be proud of. 1t is a business of
permanency and stability, with a
great future.
The life insurance business has
doubled IN size every decade for
the past so years and all signs
indicate that a greater volume
of life insurance will be written
in the next decade than in any
similar previous period. Even in
1881, 10 per cent more business
was put IN the books than the
average for the preceding ten
year period.
COIors Are Flying
The life insurance companies
in this country are going through
these difficult times with colorS
flying and there is good reason
to believe that when more pros
porous times return, a larger per-
centage than ever before of the
peoples savings will be invested
in life insurance.
AS a vocation, the life insur-
ance business offers great oppor-
tunities at the present time.
Every man and woman with some
money is a ready prospect for
life insurance or annuitieS, and
it is not difficult to sell today as
public confidencei n life insur-
ance stands higher than it ever
has.
Millions Of people now realize
the financial value of life insur-
ance as never before and have re-
solved to start a substantial in
surance program to prepare
against future depreSsions and
thousands of people who have
been forced to drop their insur-
ance will want to replace it with
new insurance as soon as they
can.
Throughout the financial
storm, life insurance has proved
itself to be the one safe and
non-shrinkable investment. Con-
trary to other investments, it
has steadily increased in value.
A mans policy is worth more
today than it was a year ago. &.
more today than it ever was.
Stability Big Factor
An important factor in the life
insurance business is the ques-
ton of stability. Thousands of
men in the past two or three
years, after feeling that they
were in positions of security,
found themselves through no fault
of their own without jobs. This
certainly has not been true OF
life insurance men.
Life insurance statistics will
show that it has been affected
less by economic disturbance
than any other business. During
the period of the most drastic
readjustment the fluctuation, in
the sale of life insurance, has
been negligible. Seasonable fluc-
tuations are practically absent.
OF salesmen in all lines, the
life underwriters business has
probably suffered the least. Then
too, there is not the fear of mer
ger that will cause the loss of
jobs as we'll established life in
surance companies rarely merge.
They are, of all institutions, the
outstanding examples of safety
and of continuing existence.
Income from Renewals
One of the most attractive fea-
lures of the life insurance bus
ineSS is the renewal income which
is built up for the future. In
explanation, when a policy is
sold, the underwater not only re-
ceiveS his first years commission
Immediately, but every year
thereafter he receives renewal
commissions on that policy.
Consider the underwater who
writes a business of $25, 1000 a
month. His income the first year
would be approximately $4,000
and each year after that he
would receive a renewal commits
sion on that first years business
of about $3.50. If he wrote
exactly the same volume of bust.
ness every year, he would not
only be making $4,000 on the
new business but would be in
creasing his renewal income by
$3.50 a year.
Rarely does a life underwater
ever leave his business as the in
come possibilities of other buSi-
neSSes are not great enough.
DT nGI ~