Verhovayak Lapja, 1937. július-december (20. évfolyam, 27-53. szám)
1937-07-29 / 31. szám
July 29, 1937 PAGE 9 VerhovayJournal WHAT IS LIFE INSURANCE WORTH ? What is life insurance worth? That is the subject debated in the magazine, “Forum.” It is well worth reading on part of all insurance men and particularly salesman. Prof. Edward Berman, labor economist with the WPA, at Washington, D. C., attacks life insurance A year ago or so a book was issued with him as author entitled “Life Insurance—A Critical Examination.” J. B. MacLean, associate actuary of the Mutual Life of New York, read the book and wrote to Professor Berman, calling attention to some very vital errors from which he drew deductions that invalidated most of his arguments. Professor Berman paid no attention to Mr. MacLean’s criticism and in the “Forum” he repeats the same fundamental er-DO YOU HAVE A FRIEND? On first thought, you answer, “What/ a silly question!” Of course, friends by the dozens. All your Relatives, the boys and girls of your childhood acquaintance, your schoolmates, y Q u r church and social connections. Lots of friends, all you could wash for! But wait a minute-! In this changing world and under modern conditions, you can never forecast where your occupation will take you! You may wish to better your lot in another location . . .personal or family reasons may urge you to go. Timidity about leaving the home may spoil a future, a career, that may have had greater rewards. A member of the Verhovay Fraternal Association heed not fear traveling to distant cities, to starge communities where they have little or no contacts. Immediately, the local Branch of the Verhovay Fraternal Insurance Association will embrace you, make you acquainted with dozens and hundreds of solid, substantial citizens, who are willing to extend the hand of helpfulness. A perfect sense of security, a happiness of one who knows he “belongs” ... is yours by virtue of your membership. You owe it to yourself, your family, and your future, to join this nation-wide fraternal insurance organization without further delay. The honor roll of your friends will immediately be increased by the tens of thousands. Isn’t this feature alone worth your consideration? Why not investigate more deeply this matter while the subject is in your mind? A few moments spent now will yield happy returns later on. rors and makes his observations on the basis that they are correct. Mr. MacLean replies to Professor Berman in the “Forum.” Flaws Are Pointed Out The dialogue is interesting because it demonstrates in the first place that a man of learning like Professor Berman who has not, however, any profound or exact knowledge of life insurance can be led into a field with which 'he is not acquainted to any great extent and draw erroneous conclusions from a superficial examination. Mr. Maclean, a thorough student of life insurance, points out the flaws in Mr. Berman’s statements and some are egregious. Professor Berman comments on conditions in life insurance administration and its setup that are commonly heard, and Mr. Maclean in a masterly, impartial way points out the false premises that have led Professor Berman to his conclusions. Perhaps after all the most searching and severe critics of life insurance are found in the business itself. At conventions, in the trade press and at informal gatherings it is not unusual to have some of the weaknesses brought forth and remedies suggested. An honest, intelligent criticism of life insurance is always welcome. On the other hand, the business has been subjected to critics of two kinds. The first is represented by Professor Berman, a thoroughly conscientious scholar, who unfortunately is not acquainted with the technique of life insurance and wanders far afield. Therefore, such writers do the business great harm and accomplish nothing. The next class constitutes those who do know much about life insurance and its technical features,, who criticise it for revenue and 'expect to attract attention by sensational exposes. What Berman Points Out Professor Berman, in his presentation, takes the ground that there is no guarantee that a person who buys a policy will get a return for his investment commensurate with his sacrifice. He contrasts the cost of insurance as issued by the Massachusetts savings banks and the private companies. One very interesting statement to life insurance men is that if a policyholder who has a savings bank policy, allows his insurance to run for 20 years, the dividends he has paid, plus the cash value will exceed all the premiums that he has paid. In other words, Professor Berman makes the statement that a man can take insurance in a Massachusetts savings bank and get back all his premiums and be paid a bonus in addition, which is a most marvelqus experience. He scores industrial life insurance in a very caustic way. In fact, he makes the statement that industrial insurance has developed social and economic evils so that policyholders would be better off if this system were abolished. He objects to what he terms wasteful sales methods. He claims that selling is done under high pressure and that agents sell those policies where the remuneration to them is the greatest regardless of whether they can honestly recommend them to prospects. Professor Berman then claims that the morality tables that the companies use in computing reserves are antiquated. He claims that the mortality on the business written by the Massachusetts savings banks is more favorable than private companies. He objects to the methods of insurance salesmen claiming that many endowments are sold where a lower priced policy should have been recommended. He spends considerable time in talking about lapsation, especially during the first two years of a policy, stating that many people have to give up their policies because they cannot afford to keep up the premiums but they get nothing in return. Wants a Federal Investigation A rather unusual observation by Professor Berman is that life insurance only functions completely when a policy is terminated by death. He also claims that too high salaries are paid executives. He also complains of the high interests rates for policy loans. He condemns unjustified investments that came to light during the depression time. He declares that many of the larger companies are mutual only in name as they are operated by a small coterie of executives who get luscious positions for members of their families at exorbitant salaries. After listing all these complaints he suggests that there should be a federal investigation of life insurance. Mr. Maclean then takes up all these points that have been mentioned and rebuts them showing where Professor Herman is wrong Greet Marine Day With Flags at Great Lakes Exposition THE MOST IMPRESSIVE marine parade the nation haa seen einie the war will be presented on the shore* of Lake Erie at Cleveland on July 28 when the commercial fleets of the Great Lakes pass in review before governmental dignitaries and thousands of visitors at the Great Lakes Exposition. Newton D. Baker, war-time secretary of war, is general chairman for the Marine Day and adding a romantic touch to the day will be the flying of the flags of every nation on earth, of every state in the union and in the Dominion of Canada and of the house flags of the lake fleets. The submarine S-49 will have a part in the day’s celebration, too, which will be climaxed by a dinner on the Showboat. Every vessel on the lakes is expected to pass within a few hundred yards of the Exposition’s long lakeshore frontage in Cleveland during the day. in his premises and therefore erroneous in his conclusions or is ignorant of the subject he is treating. New Teacher: — If you have 10 notatoes and must divide them equally among three persons, — how would you do it? — Helen: — I’d mash them! SECURITY Everything is going along nicely at present. Your job is good, your health excellent, your family happy. But newspapers thrive on stories of tlw misfortunes of our world. This man loses his job, that one becomes ill, still another has a serious accident that incapacitates him for future work. Suppose any one of a hundred dread fates should visit you and y.our household. Suppose, through no fault of your own, you should take sick, and be forced to spend much time away from your Occupation recuperating. And the doctor’s aid will be necessary to restore you to health. A horrible thought, — yet one that will not be denied by shutting your eyes. Will you have sufficient “backbone” to stand on your own feet and meet these obligations incurred by your misfortune? Cash will be needed in a hurry . . .and this essential cannot be secured so easily on short notice. Perhaps the helping hand of a relative or friend may pull you through. A happy thought, anyway! Many would seek charity, a wider spread social evil during these dark days of the last half decade. Charity destroys self-respect, selfreliance and moral fiber. An increasing few will have had the intelligence to store up and plan for a “rainy day”! Would you be one of these select, provident fellows? Insurance for life, for sickness and for maiming will take care of the to-morrows. Besides saving money and forestalling a doubtful future, insurance provides for old age, can be collateral in business transactions and capital for independent undertakings. Join the Verhovay Fraternal Insurance Association at once, and be safe! VERHOVAY Fraternal Insurance Ass. 345 Fourth Ave. Pittsburgh, Pa.
