Evening star., 1942-01-19
U. 5. Offers Bargains
In Term Insurance
To Men in Service
TotoI of Policies Now
Exceeds 100000; Rotes
EquoI for All Arms
Dy JAMES NARROW,
Wide World News,

by JAMES NARROW,
Wide World News.
NEW YORK, Jan. 19.-Uncle Sam
h insuring the lives and health Of
Americans going into his expanding
Array at bargain prices.
The rates are low. the Dement'S
large and there is no distinction
among the land, air and sea forces.
The Government considers all jobs
IN the armed forces equally hazard
Gus and equally important-the dive
bomber's or the sentry In an inland
barracks-and will pay OF equally.
As these armed services mush-
room into millions of men, their
desire for protection will be an echo
of civilian Americas desire for the
same thing.
The Institute of Life Insurance
said that in December-the month
of the Japanese attack on Pearl
Harbor-private insurance COM
panies did their peak monthly busi-
ness.
Policy Holdings Immense.
There are 66 600 900 Americans
holding $124 ,OOO, 900 900 in insurance,
and the Veterans Administration,
through which the Government in
surance Is issued, reported more
than TOO, 900 policies issued to men
in the service.
Members Of the Army, Navy and
Coast Guard-and this includes air
men-can get up to $4,000 protec-
ton under the National Service In
surance Act passed by Congress Oc-
tober 8, 1910.
The only plan ON which this is
offered is five-year term insurance
which, after the first year and be-
fore the end of the flve years, may
be converted into the following
forms of insurance: Ordinary life,
20-payment life or 30-payment life.
Term insurance is intended to
protect for a stated limited period.
and according to private companies
has this disadvantage: The policy
holder can never borrow against it
as he could on the other form of
insurance and every time he re-
news it must pay a higher rate. the
rate set for persons OF his age at
the time of renewal.
Waiver Of Premium Stipulated.
The Government insurance con-
tains the waiver of premium bene-
fit for disability which is considered
total after six months.
There Is q distinction in the man.
ner of pay beneficiaries, according
to their age.
Beneficiaries under 80 at the time
OF the death of the insured will re-
ceive $40 monthly payments, each
In the amount Of $5.5l for each 81 900
of insurance protection. If the ben
eficiary dies within the 240-month
period. the remaining payments are
made to the next of kin.
If the beneficiary is 80 years or
older, the policy is settled in the
event of death in monthly install
ments which are guaranteed for 120
months but continued as long there
after as the beneficiary lives.
The monthly payment Of these
proceeds on each $1,000 of insur-
understanding to the age Of the
beneficiary at the time of death Of
the insured-would run like this:
Thirty years old, $397; IS. $420;
20. $3.50; As. $4.89; so. $3.50; IS,
s603; 90, $6.S1; IS. $767.
Term Insurance Scales.
The scale of fve-year term insur-
ance offered by the Government to
It's soldiers and sailors runs like
this at various ages for each 1000
policy:
Twenty years of age. IS cents
monthly, $1.95 quarterly, $388 semi
annually and $3.50 annually.
AS the age of the insured in
ereases, 50 does the rate of pay
ment but only moderately.
AS the term insurance was con-
verted into straight life on a 81 900
policy the rates would increase ac-
eordingly For instance: in the 20
year age group-sl 23 monthly. s. SO
quarterly. $733 semi-annually, and
$1456 annually.
The 20-payment and 30-payment
policies are proportionately higher
The Government carried yearly
renewable term insurance on its
soldiers in the First World War but
the War Risk Insurance Act of
1917 and the World War Veterans
Act of 1924 provided that not later
than five years after the termination
Of the war, yearly renewable term
insurance had to be converted to a
level premium life or endowment
plan Of insurance.
Conversion Time Extended.
The time for conversion was later
extended to July 2, 1927, and the
Veterans Administration reports
that practically all yearly renewable
term insurance has ceased with the
exception of certain cases for which
provision was made under law.
The Government, acting through
the War Insurance Corp, q subsi-
diary of the Reconstruction Finance
Corp, will provide insurance against
damage to property resulting from
enemy attacks in the war.
The United States Review, a week
1y insurance publication. noted that
the corporation plan which became
effective last December 13. within q
week after Pearl Harbor was to be
capitalized at $780, 900 900 and said
Its plan was mo more than an as
sumption by the Federal Govern.
ment of responsibility to property.
owners for losses resulting from all
or naval bombardment or other
enemy action"
The plan during the preliminary
stage involved no payment of pre-
miums. no applications or policies
and no declaration or reports except
in case Of loss.
Bombing Changed British Law.
Shortly after the wars start ir
1899, the British Government en-.
acted a war damage law but after
the severe German bombings o1
England in 1910 another more com.
prehensive law was enacted ano
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