Evening star., 1955-01-13
Veterans and
Druftees
Mai. Thomos IA. NioI

World War II vets ask me to |
explain the advantages Of con-
verting TO permanent National
Service Life Insurance NSLD
from the term type NSLI taken
out as q serviceman.
Actually. it's impossible for me
TO do so. Too many personal
factors are involved such as the
size Of income, family obliga-
tions, financial obligations.
The best can do Is point out |
how permanent insurance differs
from term insurance. With this
knowledge you can have q talk
with q good insurance man In
your community and decide
whether it would be wise In your |
case to make the change.
II you have term insurance
you know that this type has q
premium payment which In
creases every five years. You
agree to pay the Veterans Ad- |
ininistration q certain regular
cash premium during the coming
five years. The VA agrees to
pay your beneficiary the value |
Of the policy If you die.
Premium Increases.
For example. II you're now "a
about the average age Of World
War II veteranS-you're paying
$3.50 a month If you have q
$4,000 policy. At 81 you'll be
paying $36.40 q month, about
Eve times as much. This chang
ing premium Is an important
consideration because the size
of the premium may become too
large for you to handle as you
get older. This is one Of the
factors you should consider when
you're thinking Of converting.
With permanent insurance.
your premium remains the same
throughout the life Of your poll
., icy. In the beginning these pre-
irlinms will be higher than you
would pay If you kept your term
policy. But as you get older the
difference between the two will
get less and less. Whether your
total premium payments come to
more in the end for the term
type Of insurance or for the per-
fnanent type will depend on how
long you keep your insurance or
how long you live.
Although. in the long run. your
beneficiaries will not receive any
more in insurance when you die
whether you have permanent or
term type NSLI. permanent in
surance does have q few benefits
which may be advantageous to
you while you're alive. They're
advantages which term insurance
never will have. Some Of these
are:
Cash value. Under perma-
nent NSLI the premiums you
pay build up a cash value after
the end Of the policy's first year.
This means that you get into
circumstances where you can no
longer pay your insurances pre-
miums. you may claim this cash
value.
Coverage Continues.
-Paid-up insurance. After
the first year Of the permanent
policy you may stop paying pre-
miurns and get a certain amount
of paid-up insurance. The longer
you've had the insurance the
more paid-up insurance you
earn.
-Extended-term insurance. If
you fail to pay your premiums.
any permanent plan policy held
for three months or more will
be extended automatically as
term insurance for the full value
of the policy for q certain period
Of time. The length Of time 1t
will remain In force is determined
by the cash value of the policy
when you stop paying.
Loan provisions. You may
borrow on a permanent plan
policy. You'll be expected to
pay the loan back when you can
and pay pei, cent interest. In
the meantime, you may still con-
tinue to pay premiums and as
sure your beneficiary Of the full
value of the insurance policy,
less any amount of borrowed
money you still owe.
you may sDrite MGj. Mai
In care of The Star about
your seruice-connected prob
lem. Please inclose q stamped.
seij-cddressed enpelope and 90
cents In coin.)
(From Associated Press Newsfeatures}