LIFE INSURANCE Why spend for uncertainty, when protection can be bought ? What is Life Insurance? In "Money and Investments," by Mont gomery Rollins, it is thus defined: "Life insurance is nothing more nor less than depositing one's money in a savings bank (that is, at savings bank rate of interest), to which is attached the gambling feature of the company that the insured will live beyond a certain period, and the policy holder accepting the wager, and betting that he will not." But in the practical run of life, a life in surance policy stands for a good many things that are worth while.
For example: You are married. A wife and children are dependent upon what you earn every day.
Suppose you earn fifteen dollars a week, or seven hundred and eighty dollars a year.
It would require fifteen thousand, six hun dred dollars invested at five per cent to pro duce that income of seven hundred and eighty dollars.
Hence, as a working organization to your wife and family, you are worth fifteen thou sand, six hundred dollars not to mention love and affection. Of this sum your health is a large asset.
Should you die without savings or life in surance, you can readily see in what position your loved ones would be.
This situation makes life insurance abso lutely necessary.
As preliminary information, these facts are valuable : Life insurance is a safe investment. All the standard companies are trustworthy and strictly honest.
The younger you are when you take out a policy, the cheaper the rate will be.
This means that for a small sum paid every year, you buy more protection for your fam ily than you would probably save in cash.
You must take a medical examination. If you pass, you have the great satisfaction of knowing that you are a good risk; of good health, with the average life expectation or better. Even this is worth money.
Then you take out your policy.
This requires regular payments, which make you a systematic handler of your money.
Being systematic will teach you to elim inate waste. Waste makes more people poor than anything else on earth.
A policy kept up to date will remove worry from your mind. You know there is some thing ahead for the family should you be taken away. This is a comfort you cannot imagine until you actually have it.
Great as the amount is of life insurance in force in the United States, it may be said, and well within the truth, that too many people have not availed themselves of this excellent means of family protection.
It is not the purpose of this text to recom mend (1) companies, (2) forms of policy, or (3) amounts of policy, beyond this: 1. No one, however much the amount of insurance he proposes to carry, should hesitate to apply to the companies whose business, in tegrity, and resources are of the highest char acter.
2. The form of policy to be taken out is generally a matter of individual adjustment.
3. The amount of the policy is again to be determined by a man's earning capacity and all that conditions it.
It has not infrequently been reported in the newspapers that men of large means carry policies aggregating a million dollars or more. A more interesting news item which will be printed some day in the future, will'relate that the standard companies have undertaken a general publicity campaign to educate the wage-earning class into the necessity of a far more wide-spread use of life insurance than is now made.
The working class, by which is meant, the mass of workers on moderate salary, have no claim in the statement that they cannot afford it. Thousands of men are deciding every day of the year to spend their money in favor of beer or tobacco as against life insurance and savings. It is poor comfort to a woman who has done her share of the family corporation work over a period of years to lose her hus band and to find herself with nothing but the reflection that "there could have been a life insurance policy if we had only thought a little more about it." Even a few hundred dollars, in such an event, is a blessing.