The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1941-08-21
Savings Bdnk Life
Insurance COMING
Policies Bought Over The
Counter On Cash And
Cary Bdsis

Overthe-counter life insurance, as
it operates in Massachusetts and New
York (and as recently made possible
by legislation in Connecticut), is de-
scribed by the United States Depart
ment of Labor in brief, non-techni-
cal, factual report on Savings Bank
Life Insurance. This bulletin was pre-
pared in response to request by the
Sixth National Conference on Labor
legislation.
Savings bank life insurance, the re-
port points out, is simply life insur-
ance issued by mutual savings banks,
"The difference between savings-bank
life insurance and the insurance is
sued by the other companies is pri-
marily in the way the policies are
sold
The plan for savings bank life in
surance was drawn up by Louis D.
Brandeis, later Justice of the United
States Supreme Court, to provide
economical life insurance for wage
earners. Mr.. Brandeis said:
The sacrifice incident to the pres
ent industrial insurance system can
be avoided only by providing an in
stitution for insurance which will
recognize that it's function is not tc
induce working people to take msur-
ance regardless of whether they real.
ly want it or can afford to carry it
but rather to supply insurance upor
proper terms to those who do want il
and can carry it.
The best method of increasing the
demand for life insurance is not elo
quent persistent persuasion, but as ii
the case of other necessaries of life
is to furnish a good article at a low
price.
Figures in the Labor Department
report indicate that, in general, com
pared with the same types Of insur
ance policies sold by other com
panies, savings bank life insurance
policies cost less; that they are thor
oughly safe; that they provide NOR
liberal surrender values; and tha
they are less likely to lapse.
The secretary of the subcommitte
: on savings bank life insurance of tn
Associated Industries of Massachu
sets is quoted as finding, on the basi
Of detailed plant surveys, that:
One dollar with the savings bank
will buy two or two and one-fourt
: times more protection, with on tn
average equivalent equities, or sur
render values.
"The elimination of selling expense
is the chief reason for lower costs i
savings bank policies" the bulleti
, states. "Out Of each dollar paid in a
premiums in 1897 savings bank in
, surance in Massachusetts took onl
seven cents for expenses. In ordinar
life insurance, issued by the othe
companies, expenses took fourtee
cents. On weekly payment industria
policies-the kind generally sold t
workers-expenses absorbed twenty
5 five cents out of each premium dol
! lar"
At the end of 1910, the report finds
: there We're 212,000 savings bank lif
4 insurance policies in force in Massa
chusetts, with a face value of 19
million dollars; and in New Yorl
where the policies were first offere
in 1898, there were 14,OC0 policies i
= effect, with face value of liz mil
t lion dollars.
= Copies of Savings Bank Life Ir
r surance" bulletin No. 44) are avail
:. able without charge, while the SUP
ply lasts, from the Division of Labo
+ Standards, United States Departmer
Of Labor, Washington, ID. G..