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FINANCING YOUR
FAMILY'S
FUTURE
by Frank Mason
T l IE following letter was received
recently by the financial
editor of a large metropolitan
daily:
"I am twenty-six years of
age and have just become a father for the
second time. I have a few dollars in the
bank and have thought of investing, but
am not quite satisfied as to the best investment
medium. I feel that there must
be some best way of planning my family's
financial future, and would like your
advice on the subject."
Just how the financial editor answered
this significant letter of inquiry, we do
not know. The importance of the reference
lies in the fact that the situation is
typical; that nearly every married man,
regardless of his business experience, or
of his income, would like to have as much
light as possible thrown upon this subject.
First in importance comes a man's
real capital, what might be called his
personal capital—that is, himself. It is
obviously of prime importance that this
basic capital be safeguarded. Most prudent
men do so safeguard it by life insurance.
The advantages of life insurance
are too well-known to need repetition
here. As to whether a man will take out
"straight life", twenty payment life, or
endowment insurance depends upon his
bent of mind. Some want "protection"
only, others protection plus investment.
The reasonable thing, of course, is to
take out that kind of insurance which
will make the least drain upon a man's
income, and wdiich will give him certain
protection—in other words, "straight
life" insurance.
Any honest insurance agent who understands
his business can explain the
advantages of this type of insurance over
any other kind of life insurance. Unless
a man is of a spendthrift disposition,
endowment insurance will prove to be the
less satisfactory investment. Its one advantage
is that it compels even the most
careless to save against his will.
There is a very important factor most
men forget in taking out insurance. Few
men drop dead suddenly. Death, even
where it results from some untoward
accident, is preceded frequently by a
period of helplessness at home or in the
hospital. Most men are sick more than
once during a lifetime. When a man is
sick his earning capacity obviously ends.
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