Evening star., 1952-12-17


ginning of the Korean War June
I27, 1850.
The next question is: "Why
should convert my insurance."
This is something you will have
to decide for yourself after you
know the differences between term
and permanent plan National
Service Life Insurance.
Term Policy Is Cheapest.
| A term policy is the cheapest
insurance, but every five years it
must be renewed at a progressively
higher premium rate depending
upon your age at the time of re-
newal. For example, World War
II veteran who took out a $40, 900
term policy at age 20 will be pay
ing an annual premium of 1895 40
at age IS, whereas a man with an
ordinary life permanent policy will
pay $145.60 at that age, the same
premium he paid at age 20. For
men whose earning capacity may
decline as they grow older, the
premium rates for term NSLI may
become almost prohibitive.
Another aspect of term insur-
ance to consider is that it only
provides coverage against death.
You don't have certain guaran-
teed values as you have with per-
manent plan policies after pre-
miums have been paid for one
year.
II Tor some reason you have to
drop your insurance you have
cash surrender value" under a
permanent plan. The amount of
money you can collect depends up
on how long you've had the policy.
Paid Up Insurance.
Or if you find premium pay
ments difficult to meet, with a
permanent plan you can exchange
your policy for a reduced amount
OF paid-up insurance upon which
no further premiums need be paid.
In the event you fail to pay your
premiums on a permanent policy,
your insurance will be extended
automatically for a limited period
OF time depending upon the cash
value OF the policy. On term poll
cies. failure to pay the premium
within 81 days after it is due will
cause the insurance to lapse.
All permanent plan policies
have a loan provision. This Is
important to you veterans who
wan to buy a home under the
CT bill. Insurance is the only
thing you can borrow on for the
down payment.
If you decide to convert your
insurance to a permanent plan
you should make application to
the Veterans Administration be-
fore the term period of your pres
ent policy expires. No physical
examination is required, but you
must pay the first premium of the
converted policy with your appli-
cation.
Conversion Plans.
The term policy you now have
can be converted to one of the
permanent plans listed below:
Ordinary life-The cheapest of
the permanent plans. You pay a
fixed premium throughout your
lifetime.
Thirty-payment life-You pay a
fixed premium for 80 years. After
that your insurance remains In
force. but you no longer have to
pay for it.
Twenty-payment life-The same
as 30-payment life except that
you pay premiums for only 20
years. The premium necessarily
is higher. but so far this has been
the most popular plan among GIs
who have converted their insur-
ance.
TWenty-year endowment-You
pay fixed premium for 20 years.
At the end of this period you can
collect the insurance in one sum
or in monthly installments. The
premium is higher than for the
three previously mentioned plans,
because not only are you insured
against death during the 20-year
period, but you can collect the
insurance yourself at the end of
that time.
Physical May Be REQUIRED.
Endowment at age so and en-
dowment at age 65-You pay pre-
miums until you reach age so or
IS. Then you can collect the in
surance in one sum or in monthly
installments.
If you have allowed your NSLI
term policy to lapse because Of
non-payment Of premiums, you
can reinstate and convert it at
the same time, before the term
expires. You should make appli-
cation to the VA and send in two
monthly premiums-one for the
coverage after lapse of the term
policy and the other for the first
monthly premium on the new
converted policy. A physical ex-
animation is required If the term
policy has been lapsed three
months or longer.
For additional information, 60
to your local VA Office or write to
me for a VA pamphlet on insur-
ance. Be sure to send in a stamped,
self-addressed, legal-size envelope
with your request.
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