July-August - Air Defense Artillery

policy for the cash surrender ,'alue thereof
and become insured against death by
the gratuitous indemnity while he remains
in active sen'ice and for 120 days
after separation. \Vithin such 120 days
he may upon application be granted
without medical examination permanent
plan insurance on the same plan not in
the excess of the amount surrendered, or
he may reinstate such surrendered insurance
upon payment of the required
reserve and the premium for the current
month.
Permanent policies under one year
old have no cash value and cannot be
replaced upon separations. They can be
reinstated, but the conditions are unfavorable.
Advantages: Those who need more insurance
protection than their present
budget affords may increase their protection
substantially by using the proceeds
and the premiums saved to pay for additional
insurance. In that case we recommend
ordinary life which provides an
option for life annuity, Since most army
officers do need the additional insurance
we recommend this option to them. H owever,
no government policy shoHld be
sllrrendered for its cash valHe Hntil a contract
for additional commercial insllrance
has been signed.
For relative advantages in protection
take the case of l\lajor Roe, 35, who converted
his insurance to a NSLI ordinary
JULY-AUGUST, 1951
life policy for $10.000 five years ago;
monthly premium $15.60: surrender
,'alue S557.00. Should death occur now,
his widow, same age, would recei"e from
NSLI in a life
guaranty:
annuitv.. with 20 year
In ten vears
In twenty years
In thirtv vears
In forty years
If l\lajor Roe cash surrenders, he can
procure $8,000 additional nonparticipating
ordinary life insurance in a sound
company with the monthly premium of
$15,60. Should death then occur, his
widow could receive from the gratuitous
indemnity plus life annuity with 20 year
guaranty from the new policy:
In ten years $14,201
In twenty years $17,254
In thirty years $20.306
In forty years $23,359
Or J\'lajor Roe could request waiver of
premiums and procure an ordinary life
policy for $3,600 with the $7.10 per
month waived. Should death then occur,
his widow under conditions similar to
those above could receive:
In ten years
In twenty years
In thirty years
In forty years
$ 5,040
S10,080
S15,120
S20,160
$ 6,414
$12,828
$19,242
$25,656
Such 'analyses show that the immedi-
Loading 40mm gun.
ate protection at a time of maximum
need can best be enhanced by cash surrender.
Against that, the sen'iceman who
requests a waiver, takes more insurance
with the saving, and who lives until his
separation from the sen'ice, will then be
in better shape as to insurance protection.
Since good commercial insurance may
not be available to the serviceman overseas,
he may well consider wai,'er of
premiums until he can return to the
States. Similar action is also recommended
for those who are presently un.
insurable with commercial companies for
physical reasons.
If you have substantial loans against
the policy, that would indicate advantage
in surrendering the policy.
Disadvantages:
Temptation to dissipate the cash unwisely.
If the insured has a total disability income
provision, that would lapse during
the period covered by gratuitous indemnity
and may be difficult to reinstate.
Unless the cash value is substantial
and is well invested, or unless the sa\'ings
are used to add to the insurance substantially,
the family protection is decreased.
Recolllmendation. Study your insurance
needs carefully. Consult your unit
insurance officer, or other sound authoritv.
Army l\lutual Aid Association members
are invited to ask for assistance.
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