Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1940-01-18
THE MONEY TREE
By ETHEL M. TROY


Knock at the door of practically
any home in this country and with
in there will be found the owner Of
life insurance policy. 1t is sur
prising, however, that even with
such widespread use of this SER
vice for more than a hundred years
many persons who are well-posted
on other subjects have only a
vague conception of the manifold
uses to which life insurance can be
applied.
Since life insurance policies have
been planned to meet variety of
needs, there are necessarily a vari-
ETY. of contracts available. To re-
vert to the money tree illustration,
figuratively man may plant one
kind of a money tree in the grader
of his new. home to provide the
necessary dollars to pay off the
mortgage on that home in the
event of his death; and as his
children are born he may plant an
other kind Of tree on the campus
of his Alma Mater so that when
the time comes for the children to
enter college they may go to the
tree for the required funds, wheth-
er he be living or dead at the time.
And so may many other known flu
ture needs for money be met by
life insurance money trees dedicat-
ed to those occasions.
r. The ordinary life policy is the
basic contract of most companies
1t creates the largest estate for the
| least outlay of money, permanency
considered. The deposits on ordi-
nary life policies are paid usually
until death, but in mutual COM
panies the dividends accumulated
throughout the years may be used
| in the latter years to make the
contract "paid-up" (no further
payments required of the insured)
or payments, may be continued a
few years longer and the dividends
be used then to mature the policy
as an endowment to the insured, or
| the paid-up policy may "accumu-
late" beyond the "paid-up" date
and later mature as an endowment.
| Many companies allow ordinary
life policies to, be converted into
limited payment policies or into
endowment contracts, thus permit
! ting young man starting out with
obligations to home, family and
! business to protect all those re-
sponsibilities at once, then as his
! income increases, he may convert
part or all Of his insurance into
other forms within a minimum OF
"red-tape". An added advantage
is this plan allows the change to
be made without reference to the
physical condition of the insured
| at the time of conversion.
Should a policyholder elect tc
limit his payments to specified
|
number of years, he may do so
enjoying under this plan the same
benefits that are found in the or
binary life contract.
Endowment policies are paid to
the insured at the end of the prem,
ium-paying period or to the bene-
ficiary in the event of the death OF
the insured prior to the maturity
of the contract.
The insurance idea, it will bt
noted, was originated to care fol
widows and orphans should the
head of home die. The passing
years revealed that, assuming q
man lived to see his children grown
and self-supporting, he then faced
the need for maintaining financial
independence for himself and his
wife to the end of the road. The
policies outlined above are so con
structed that at retirement there
is cash available to the insured
which may be used to meet this