The Washington times., 1932-09-06
Family INCOME
! POLICY AIDS
CHILDREN
BY FRANK r. LOOMS

.'AhG COhILdCL, WElCISu Dy IHdIly
nfe insurance companies today,
called "The Family Income Pol
acy," enables a man to secure a
large amount Of life insurance
protection for small outlay at a
time when need for this protec-
tion is greatest.
When a mans family consists
Of q wife and small children, his
need for life insurance protection
Is greater than during any other
time Of his life. In later years,
when the children are grown, edu.
Gated and have reached the self
supporting age, this need natu-
rally lessons. .....
The outstanding advantage of
o family income policy is that it
assures the insured's family a
definite monthly income during
those all-important years when
the children are growing in the
event their father died. For in,
stance: A $4,000 policy will pro.
duce an income of $100 a month {;
q. 100000 policy, an income of
5000 month; $50,0 policy,
an income of $500 month, etc.
No Risk to Wife
The wife is not required to run
the risk Of finding safe invest.
ment for the insurance money,
and has no need to look after the
collection Of the income. Month
by month, her check comes to her
without the delay of a day for the
entire assets Of the life insurance
company are bae kof each con
tract it issues. At the end of the
income period, a final cash pay
1nent for the full face value OF
the policy is paid, $4,000, SIC, ,00C
or whatever it may be. This Is
also an important feature. for in
later years, when the children are
grown and able to take, care OF
themselves, it will assure finan.
cial independence for the in
, sured's wife when she is most ir
need of it.
There are various forms OF
family income policies written
ALL however, with the purpose OF
providing a mans family with an
income while the children are
young, In the event of his death
and a substantial cash payment
guaranteed aside from the in.
come. An illustration of how one
plan works out is given below on
the basis Of a $4,000 family in.
come policy.
Family Cared For
Should the insured's death
occur within 20 years from date
OF policy, irrespective of whether
1t, is during the first or twentieth
year, an income of $1O0 a month
Will be paid to his family for 20
years, or a total of $4,000. AT
the end of the 2O-year income
period, final payment of $4,000
cash will be paid, making the
total guaranteed payments, in
case Of death within 20 years
from date Of policy, $4,000. These
. guaranteed payments would be
materially increased by the di
Vided earnings of the company.
The monthly income is condi
toned on the insured's death
within 20 years from the date of
the. policy. If he outlives that
period, the final payment OF
$4,000 cash will be paid i'm.
mediately at his death, or if the
insured so desires, a special ar.
rangement may be made so that
the $4,000 cash will be paid to
him in later years.
II the beneficiary should die
either before the inSured's death
or after and while she was receiv
inv the monthly income pay
mentS, all the payments, or the
remainder of the payments, as
the case might be, would be made
to a substitute beneficiary named
by the insured. This is the Gus
tomary manner of completing the
contract.
Premium Stated
The annual premium deposit re-
quired for this contract, as de.
Seribed above, is $377.9 at age 35
After 20 years. it would be re-
duced to $263.50. For an add
tional premium deposit of $29.6O
a year, a double indemnity clause
may be inserted in the contract
whereby If the insured's death
were by accidental means, and oc,
CURED before age 10, the monthly
income and final payment would
be doubled.
The monthly income period
may be changed to meet family
conditions with a corresponding
readjuStment of deposits. For in.
stance. five years from issuance
OF the contract, the income period
may be reduced to IS years; after
10 years, to 10 years and after is
years to five years, and the pre-.
mium deposit reduced accord,
ingly. Thus. you pay only for
the protection you actually need
e.
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