Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1940-01-11
THE MONEY TREE
BY ETHEL M. TROY
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BY ETHEL M. TROY


Believing that Money grows
on Money Trees" and seeing life
insurance as one of the best of
the Money Trees, still we must
confess that we occasionally meet
folks who do not share our enthus-
iasm. However, there are other
equally sincere people who do not
believe in religion and some who
see little value in formal educa-
ton, nevertheless, this country is
dotted with cities, towns and vii
lagos wherein the tall spires of
churches point heavenward and the
wide doors of schools, colleges and
universities open to those desiring
to increase their knowledge and
methinks these churches and
schools are here to stay.
And so with life insurance. Ac-
cording to Holgar ]. Johnson, re-
firing president of the National
Association of Life Underwriters,
the So, 100000, 900 which life insur-
ance companies paid to benefici-
aries and living policyholders in
1888 was "two and one-half times
the amount spent for national de-
tense; enough to buy all the ma
tons bread and butter for one
year; enough to buy new automo-
biles to reach - bumper to bumper
= from New York to San Fran
cisco.
with but z per cent of the
worlds population, the people of
the United States own 70 per cent
of the insurance; the insurance in
force is nearly 25 per cent of our
national debt; would provide nearly
two years of security, based on
1888 average income, for every
family in the country.
"The average policy is for 81, 100
and there are on the average two
policies per policyholder. With
policyholders and beneficiaries. in
surance affects the future of nearly
1OO,OOO,OOO people,"
But what about the insurance
money Tree, as we elect to call
It? Unlike the apple tree, the
yield of which cannot be predicted,
the crop of the insurance "tree" is
guaranteed from the day of plant
ing. And how is such a tree
planted? By application to an in
surance company, with proof of
physical well-being and payment of
the initial deposit.
Ut will be remembered that in
these articles the usual practice of
a majority of the standard COM
panies will be quoted. On occasions
a company may offer a special
policy for a limited time, to meet
a specific situation).
For clarity, the term premium"
Identifies the payments or deposits
made by the insured policyholder
to the company; the "policy" is
the contract issued by the COM
pany; the dividend" is that share
Of the earnings and savings of the
company which is paid to each
policyholder of mutual companies
and in certain departments of stock
companies to policyholders.
Insurance companies usually is
sue policies in units of $1,000 OF
multiples thereof = young wom
an starting her business career as
a secretary to a patent attorneys
office starts her "dollar orchard"
with one $500 life insurance pol
icy, while surgeon, at the height
of a successful professional life
has a guaranteed crop value OF
$25O,OO in life insurance, and
financier has 100000 in his life
insurance orchard. To these may
be added the millions of Americans
with money trees in amounts be-
tween these figures.
These orchards are secure in the
realization that, should they die
early, the full crop of dollars on
their trees will be paid to those
they have designated as nearest
and dearest to them, whereas if
they live to retirement age, their
relative savings can provide for
their own old age and every month,
as long as they live, they may go
to the life insurance tree and
gather a definite number of dol
lars knowing that similar fund
will be there next month and the