Evening star. [volume] (Washington, D.C.) 1854-1972, 1961-08-14

The odd part, however, i.
that both men spent about the
same amount each month or
their insurance programs. Tit
first mans program did what
it was supposed to do. Tht
second mans was a make shift
affair and it failed the crucia
test.
Then why do cases like thu
one involving the second Texa,
family occur with clock LIKE
regularity?
The answer is that Will,
Americans believe in thu
virtues Of insurance, they Of
ten lack the information II
decide which of many different
policies is best for them, and
how to obtain the best one al
the lowest price.
Many authorities have tolC
me that the most important
single fact to remember is thai
the breadwinner in your
family probably already ha!
life insurance through the So.
cial Security program. Under
this program of the Fedora
government, employers, theil
employees, and self-employec
people pay Social Securit!
taxes during working years.
These taxes go into Specia
funds. When earnings stop be.
cause the worker retires, dies
or is disabled and is so year,
old or over, benefit payments
are made to replace part Of
the earnings the family ha!
lost. Thus Social Security &C.
cupies a vital part in YOU
family financial planning.
Nine out of ten working
people are covered. If you have
worked long enough to bt
covered, and if your worl
comes under the law, you
family can get monthly pay
ments if you die.
The amount of the payment.
your survivors get will depend
upon the amount of work done
and how much you earned.
Why Life Insurance?
Social Security payment!
will provide for a minimum
subsistence for your survivors
liz you die. It was intended tt
keep them from actual need
not to give them all the things
you probably would want then
to have.
Life insurance will help com.
plete your program. 1t will
give specific protection fol
your own individual circum.
stances. Your family situation
age, earning prospects, YOU
ability to save money if no.
body forces you to-in all these
conditions you differ from
your neighbors.
In evaluating your owr
family's needs. you might keel
in mind answers to these three
questions:
l. Whose Lives Should b
Insured? Most families woult
feel real financial need onl!
if the chief breadwinner died
OF course, the death of an!
family member would be
shock and funeral expenses
might be difficult to pay, bu
the main income would con
tinue. Real financial tragedie
happen when the family in
come is cut off-and there i
little or no insurance none!
to replace it.
Experts agree that if thu
father is the sole support, mos
or all the insurance should b.
on his life. Many yount
families also add a policy OF
the wife's life. While no on,
could replace a mother in thu
home, such a policy would pro
vide funds for skilled help t.
keep the family going, for
time at least.
2. How Much Insurance.
Should You Garry? The amour
of insurance most people carr!
generally depends as much
upon their income as upon TIT
amount of protection the!
actually need. Some studio
have shown that the typica
!. American family puts aside
, per cent of it's income for lif
insurance-that the man VIII
earns $3.50 a week will set asid
$3.50 of it in this way.
AS minimum, strive to pro
vide insurance equal to tire
to five years income. If yo'
earn $4,000 a year, you woul'
therefore want at least $15,00v
worth of insurance.
8. Which Kind of Insurance
is Best for You? Basically. Their
are three kinds of policies:
TERM INSURANCE is pur
protection - usually nothing
else. 1t always has an expira
ton period when the protec
ton runs out. While this nigh
be only one year, it is usual,
five or ten years.
Premiums are based upol
your age when it is writer
Thus the same amount OF pro
lection costs more and NOR
the older you get. Moreover
most companies will not reneN
any term policies after yo'
are SIS or so.
Some policies are also con
vertible. Within prescribe
4 periods, and without an ad