Evening star., 1939-12-31
Life Insurance Total
Is Boosted 10 New
A||-Tin1e High
Broadening Of Social
Security Act Likely
To Help Sales
Nv Cambridse Associates,

BY Cambridse Associates.
Adding more than the II and
half billion dollars, in new life
insurance, an increase in new busi-
ness over 1888 of about 21z per
cent, life insurance in force in all
American legal reserve companies
attains a new record total of $1l3,-
300 900, 900.
Benefits totaling $2,650,0OO 900
were paid out in 1899. OF this
amount $95O0OO,OOO went to bene-
fciaries and $1,70O,00O,0 900 to living
policy holders.
Looking into 1910, life insurance
men see several important factors
that may contribute to further
gains and wider usefulness for in
surance. Chief among these per-
haps, because of it's long-term
significance, is the effect of the
new social security benefits which
are effective from January /.
1t is estimated that about five
million people earning from $500
to $4,000 year will come under the
act. The social security benefits will
furnish the basis, it is predicted,
for many to carry out adequate life
insurance programs where before
limited income made the whole
burden Of the program infeasible.
Regarded As Aid.
The beginning of regular pay
ments under the terms of the
Social Security Act is also expected
to further stimulate interest in
annuity income plans. The Gov
ernment in carrying out the pro-
visions of the revised Social
Security Act is held, therefore, not
to be competitor of the private
life insurance companies, but
rather distinct aid in demonstrat-
ing the need of desirability of in
surance to many who might other
wise ignore its full possibilities.
Two other trends, neither of
them new, but undiminished if not
augmented in their effect last year,
are expected to continue to have
an effect upon life insurance sales.
One is the use OF insurance as an
investment medium by those who
seek safety of capital and fixed
income rather than attempt to find
profitable and safe employment for
their funds in the security markets.
The other is the persistent need
for insurance funds to take care
of taxes if an estate is to be
economically transferred.
Heirs Protected.
This latter consideration bulks
large in the plans of many prop
erty owners at present. They know
that their heirs may be seriously pen
allied by the forced sale of assets if
cash is not at hand to meet estate
and inheritance taxes, administra-
ton expenses, and the other charges
which must be settled out of their
estates within restricted period
BY well-advised planning, insur-
ance proceeds can be made avail
able to answer this problem with
out sacrifice of tax exemption priv
ileges.
On the investment side, insur-
ance company reports reveal that
in 1899, as in the year before,
fewer Government obligations were
being bought, Last year the in
crease in these holdings was the
smallest of any year since 1882.
All together, more than s75O,OO0,-
900 were placed into bonds and
mortgages. Funds totaling $418,-
900 900 went to increase holdings of
public utility securities. Urban
mortgage holdings were increased
by s2O4,00O00O; s1O1 100000 went
INTO industrial issues and s63,700,.
400 into railroad securities.