Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-11-15
Argues for Usefulness
OF Insurance Statesmen.
70 the Editor Of The Star

life insurance without the help Of sales
men has been tried and today the place
Of the individual salesman is more Sc
cure than ever.
The State has tried it. In 1911 was
formed the Wisconsin State Life Fund
and in its last year. after n years Of
effort, 1t wrote 1894 900 while the agents
In Wisconsin were writing $24l 900 900.
The banks have tried it. The Massa-
chusetts Savings Bank Plan started in
1907 and in 1889. after 81 years, wrote
between 4 and 5 per cent Of the total
paid-for business in Massachusetts,. New
York Savings Banks have tried 1t and at
the end Of their first year had an aver
age policy Of 1910 for a total Of $780,
900 Is against $l,852, 600, 900 written by
agents.
The mails have been tried. The out
standing exponent Of insurance by mail
started in 1904; it reinsured two COM
panies for . total of $50, 900 900 and has
today $4,000 900 in force. Sears, Roe
buck tried 1t on an unprecedented scale.
Here was q magnificent merchandising
institution sending out carloads Of cata-
logues enjoying great prestige among
those receiving catalogues, and yet with
every effort to results at the end of three
years showed . loss Of $1,000, 900 In
force.
There Is another angle to this. It is
conceivable that agents are necessary to
distribute life insurance but that they
cost too much. Admitted that salesmen
are necessary to distribute large amounts,
1t is possible that We could have less In
force and get insurance cheaper.
II new business were discontinued
there would appear to be an increase in
margins. These margins, however, rap
Idly would be Offset by an increase in
mortality costs as the proportion of
business that was sales-selected dimin-
isled. Sales pressure is necessary to
bring In large volume of risks that are
sales-selected and not self-selected. An
aggressive sales organization is an in
strument Of selection even more essen
tial than medical selection. It Is be-
neved that in the long run the cost of
life insurance to the existing policy
holders would be increased by the dis
continuance Of active sales.
Life insurance is not bought by the
public-it must be sold.
All Of this is not to say that the dis
tribution Of life insurance cannot be i'm
proved It can be and should be i'm
proved. But no bank or post once plan
and no system Of compulsory buying has
yet been discovered that will take the
place Of the conscientious life UNDER
writer. HOMER w. WILLS.
Tslk why Opposition
Seems Necessary.
To the Editor Of Tbs Star:
After the election I read an article In
one Of our local papers to the effect that
the former policies of the New Deal
would be continued and al were asked
to unite in furthering these policies.
Before the election the supporters Of
Willkie were for him because they were
not in sympathy with encouraging COM
munism and retaining Communists on
the Government pay roll. These OBJ
jections are Just Is valid after the elec-
ton q they were before.
Before the election the supporters Of
Willkie were for him because they did
not want this Nation to be led into
national bankruptcy. National bank
ruptcy Is Just - Objectionable now - It
was then,
Before the election the supporters of
Willkie were for him because they OPP
posed the tendency Of the New Deal
away from the basic principles on which
our Government was founded. This
tendency Of the New Deal away from
democratic ideals IL Just - evident now
O. It was then.
A loyal opposition to the above poll
cies Of the New Deal must continue II
We expect to retain our American way OF
life. Willkis was right.
o0oNoB ,. HATTB.