Evening star., 1947-03-21
What About
Insurance?
By Betty Miles

Americans are the most insured
people on earth. But few Ameri-
cans know enough about life insur-
ance to enable them to buy intelN-
gently. So claims the Public Al
fairs Committee In its pamphlet
entitled How to Buy Life Insur-
ance" by Maxwell S. Stewart. We
are sometimes uncertain as to how
much insurance we should carry,
and what part of our income it is
reasonable to put into life insur-
ance. We may not know what mem
bers of our family should be in
sured, and to what extent life msur-
ance should be used as means Of
savings. There is also the question
of whether or not we should have
our policies paid in a lump sum, in
instalments or as a life income. In
fact, it's possible to hold a policy
without being certain as to the bene-
fits to which we are entitled.
How much protection a man
should carry at one time Is, OF
course, top on the list Of questions.
The chief purpose of insurance,
according to the pamphlet, is to
replace the income which the
breadwinner would have provided
for his dependents If he had lived
out his working years. The point
Is illustrated in this way: John Doe
may be IS years of age, and earn
ing $500 a year; his expenses are
$500 a year and 5000 goes to the
support of his family. He can prob
ably count on working 80 more
wears. Thus, he can reasonably ex-
pect to contribute $4,000 for the
support of his family during his
life. Insurance to the amount OF
$4,000 should be enough at the
present interest rates to provide his
family with that $27 900 should he
Gle. Still less would be necessary II
his family is entitled to survivors
insurance under the Social Security
Act.
This may we'll be more insurance
than Mr.. Doe can afford. But 1t Is
a guide by which to Judge his In
surance investment.
Regarding those members OF a
family who should be insured, 1t is
claimed that it Is wiser to take out
more insurance on the famlly's
breadwinner than to take 1t OUT
on other members of the family
who do not contribute financially
to the family's support.
Are you familiar with the diner
ence between straight life insur-
ance, the limited payment plan, the
endowment plan and the term plan?
Are you familiar with the pros ano
cons of ordinary, industrial ana
group insurance? Do you know
about the special insurance plans,
such as income replacement and re-
tirement income? What is the prln-
cipal behind annuities? Can you
understand the provisions In your
policy? What does 1t say about
cash value, policy loans, settlement
options and nonforfeiture value?
AS financial protection against
antimely death life insurance Is un-
challenged. Its comparative Value
as a means of saving has been a
matter of dispute, and How to Buy
Life Insurance" discusses the pros
and cons of this issue. Information
on the role of the insurance agent,
the safety of insurance companies
and so forth, is included. .
The pamphlet contains list OF
concise suggestions to remember.
Some of the more detailed infor-
nation may require second read
ing. The Public Affairs Commit
tee is a non-profit organization de-
voted to informing the public. the
pamphlet mo. 62) may be secured
by sending 10 cents to the Public
Affairs Committee, Inc, % East
Thirty-eighth street, New York TO-
N. Y