Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-01
House Studies Bills
For Debt Relief and
Draftee Insurance
Men in Armed Forces
Could Obtoin Policies
At 81 Cents Per 81 900
BY HAROLD B. ROGERS.

The move to provide further
financial protection for draftees and
other men in the armed forces went
forward today as the House pre-
pared to consider two separate meas
ures providing a moratorium on
debts and a new kind of Federal
insurance.
The debt moratorium is author
lied in a bill which was passed by
the Senate yesterday and sent to
the House, where a similar measure
already has been reported out by the
House Military Affairs Committee.
The new Federal insurance is pro-
vided in the excess profits tax bill.
agreed to by Senate and House con-
ferees and slated to come up for
consideration today in the House
known as national service life
insurance, the new offering will be
entirely separate and distinct from
the old war risk insurance and its
successor. United States Govern
ment life insurance.
One reason for setting up the new
insurance is to protect the $8,000,-
900 900 fund built up by about 610,-
600 holders of the United States
Government life insurance, which
has been in effect since shortly after
the World War.
The new insurance will be handled
by the Veterans Administration,
which has charge of the present in
surance
81 Cents Per Month.
The cost of the new protection has
been fixed at ST cents per month
per $1,000 for a man at the age of
25. The table of premium rates will
be worked out with this as a key.
SO that the young man of today who
is called into service may buy in
surance protection at cost some
what similar to that offered World
War soldiers.
The new coverage will be obtain
able in multiples of $780, The
lowest insurance policy will be writ
ten for 81 900 and the largest for
$4,000.
AllCl OllC NCdI Wis liz" SPSSAoA
policy may be converted into one
of three different kinds of insurance
ordinary life, 20-pay life and 30
pay life.
If the initial beneficiary is under
80 years of age and the service man
dies, the insurance benefits would be
paid in 24O monthly installments. If.
however, the beneficiary is over 80
years of age. the payment would
take the form of life annuity.
Benefits would be paid only in
case of death of the insured.
Available to All in Service.
The new insurance is available
not only to draftees. but also to all
men in active service within 120
days. The period begins at the date
of acceptance into service in the
case of new men, but in the case
of men now in the service it begins
at the date the insurance first Is
offered
The new insurance is voluntary,
and if draftee does not take it out
and is injured in line of duty, he
still would be in line for the regular
disability payments due soldier
in peacetime. If he should die in
line of duty, without having taken
out insurance, his family would be
in line for the pension due the family
of a peacetime soldier.
Veterans of the World War will
be eligible to buy not only the old
insurance, but also the new, under
certain restrictions. The total of
their policies in either or both kinds
of insurance cannot be more than
$4,000. A World War veteran. either
in or out of the service, may take out
a United States Government life
insurance policy on showing OF
good health. If he is in the service
he can buy the new insurance on a
showing of good health. If he vol
unteers or is called up as Reserve
officer, he may buy the new insur-
ance within 120 days after his &C
ceptance into duty without new
medical examination.
In both systems of insurance the
Government bears all administrative
expenses.
Government Bears Losses.
Also in both systems the losses
traceable directly to the extra haz-
ards of military service are borne by
the Government, without being