Evening star., 1949-07-14
Druftees' and
Veterans Guide
By Moj. Thomas M. Mol

BY Moi. Thomas N. Mol
You bought your insurance on
the term plan. II you got II
before January 1. l946. the term
is eight years. II after that date.
the term is Ave years.
Both those eight and Ave year
terms have been extended by Con-
gress for an additional five years
unless YOU got your insurance
after January /. 194s, in which
case the extension does not apply
But the chances are very good
that Congress will keep on ex-
tending term insurance for addi-
tional f1ve-year periods indefl-
nitely, with the premium going
up each five years.
But let's say you're not inter-
ested in term insurance any more
because you want to convert to
permanent form, Once you con-
vert. your premium will jump up,
but it will stay at that level for
as long as you have to pay. And
your insurance will Immediately
start to accumulate what is called
a cash value" This means you
can borrow money on the policy,
you can cash the policy in for its
full cash value or you can have
the reserve" of your policy ap-
Piled as one single premium to
the future. as far as it will stretch,
something called extended insur-
ance."
| What are the six types of per-
manent NSLI to which you can
convert? I'll list them and then
try to explain them.
| /. Straight Cor ordinary life.
2. Thirty-payment life.
3. Twenty-payment life.
4. Twenty-year endowment.
S. Endowment at age so.
6. Endowment at age 65.
Straight life is the cheapest.
You pay premiums for the rest Of
your life, unless you leave your
dividends payable each year,
with the VA, in which case you
may have a paid-up policy before
you die. At age 80 this policy
will cost you $184,70 a year for
$4,000.
/ Next cheapest is the 30-payment
life policy. You pay premiums
of $216.70 year for 80 years (for
the maximum $10,000D and then
you have a paid-up policy. This
doesn't mean you get the 10 grand.
You don't. Your beneficiary gets
it when you die.
At age 80. the next cheapest
permanent type NSLI is endow-
ment at age IS. That will cost
you 1892 a year for the $4,000.
You quit paying premiums when
you reach IS years Of age and you
get the $4,000 paid back to you
with interest in monthly INSTALL
ments or in a lump sum, which,
ever you prefer. The installments
can range anywhere from 36 to
240. If you die before getting 'em
all your beneficiary picks up the
balance in the same installment
method or. If she wants, she can
take a lump sum settlement.
Next cheapest at age 80 is the
endowment at age go, which costs,
at that age, $268.70 q year. You
pay till you get to be 60 at which
point the insurance is repaid to
you as above-lump sum or SO to
240 installments. Same thing
happens if you die before collect
ing the entire amount.
The Repayment life policy is
the next cheapest Cor call it the
second most expensive). At age
30, it will cost you $273.50 a year
for the full amount. You pay
that premium for 20 years and
yUu tllSll 1ldNC q Pd10-uP po4ASJ
which Qike the 30-payment pol
icy) you cannot get your hands
on. (Oh. yes. you can borrow on
it or take out the cash value,
but you cannot get the insurance,
as you can with the endowment
policies.) Your beneficiary gets it
when you die.
And finally. the most expensive
of all. at age 80 is the 20-year
endowment. Cat age 40, however,
the 20-year endowment is exactly
the same amount as endowment
at age 60.) At age 80 this costs
you $415.50 a year for $4,000
worth. Twenty years later you
get your money in lump sum
or In 80 to 240 installments.
You may torite to Maj. Nal
in care of this Newspaper IN
connection with your otDn
serDice-connected Droblem, En-