Fraternity-Testvériség, 1948 (26. évfolyam, 1-12. szám)

1948-07-01 / 7. szám

"YOUTH UNLOCKS THE FUTURE"

(From “The Fraternal Age”)

On various occasions was expressed the thought that the fraternal system has a chance to become again the largest institution of life insurance on the North American Continent, and that means the whole world. Of the foundation principles that determine the permanence of life insurance, the fraternal societies have them today. We refer particularly to required or adequate reserves and the administering of the funds under legal-reserve operation.

There are other factors that give fraternal administration of life insurance and advantage. Life insurance is for people, and there are great masses of people. There can be no life insurance without people joining together to contribute and pool their resources for security and benefits in the future. This is the basic foundation of all life insurance, whether fraternal or commercial. It should be a people’s movement, composed of people, directed by those people and for their benefit. Fraternal societies have the advantage of being closer to the people who are their members than the commercial companies are to the people who are their policyholders.

How, then, are the fraternal societies to reach more people, enlist them as members and make them feel the mutual, co-operative character of their organizations? What steps should be taken and when should it be done,

Of all the bright and constructive things that have been done for the fraternal system, the juvenile movement is the. best. During the 33 years since the National Fraternal Congress endorsed “whole family protection” at its Minneapolis session, juvenile protection has grown. It started slowly. State laws had to be enacted. Oldtime fraternalists had to readjust their minds to accept children in the lodge halls. But as the movement grew it was found that youth in the lodges was a reviving influence. Also, the societies promoted the idea that juvenile insurance should be more than burial insurance, so they introduced educational and money-to-go-into-business certificates. The commercial companies have tried to copy , that spirit. The result ils that the writing of juvenile insurance has multiplied in volume and is a big thing.

The encouraging feature about this is that the fraternal societies do not intend to stop. This year the National Fratérnal Congress has a Junior Membership Committee, of which William G. Fisher is Chairman, which is a working committee . . . and more. It has come forth with ideas. One was a slogan contest, and it has selected for the 1948 con- , vent ion the slogan, “Youth Unlocks the Future.” The committee is doing more than publish those words ' to hear people shout “fine.” The slogan is to be the -» theme of a junior exhibit at the National Fraternal jity/EÖnghess convention in Pittsburgh. Many societies i j have, already indicated that they want space in that exhibit, and it is possible’ that the exhibit will be the biggest feature of the convention. Samples of literature and insurance contracts, pictures of junior drill teams and pageants, photos of young people who

are getting an education with junior endowment money, statements of benefits paid and statistics of membership, as well as programs of special junior meetings, are a few things that may well be included.

Nobody can gainsay that youth unlocks the future. Youth today is the future. The evidence that fraternal benefit societies are active in and for a juvenile movement means more for the future of the fraternal system than anything else.

UNDER-INSURANCE TODAY

No longer can the prospect offer the objection that “I have all of the insurance I need.” Today the field representative may look him in the eye and tell him that the insurance he contracted for will not go as far for the benificiary.

No longer can the prospect offer the objection that “I cannot afford it.” Today there is more money in circulation and everybody, except in a few cases, is getting more of it.

John E. Little, Field Director of The Maccabees, has dug up figures to prove both these points, as folows:

“We cite statistics published by the United States Department of Labor to show the increase in earnings of those employed in manifacturing. In January 1939, the average weekly wage in this field was $23.19. This compares with $43.35, as reported in June 1946. It is even higher today. The increase in the seven year period from 1939 to 1946 was approximately 87%. It is safe to say that it is in excess of 90% today.

“We cite the above statistics to show that a man who had adequate life insurance seven years ago needs approximately 90% more insurance today to be as well insured as he was in 1939.

“There is another factor involved in this picture of a prospect’s situation in life. A graph was prepared by the Institute of Life Insurance, based on United States Department of Commerce figures. It graphically shows the decline in interest rates and the increased portion of income that comes from wages and salaries. In 1929, 22% of total personal income resulted from investments such as rentals, dividends and interest. There was a steady decline until in 1947 only 11% of personal income resulted from investments.

“When we combine the lowering interest rate with increasing levels of wages and salaries, we are impressed with the need for a greater capital investment to replace economic value of wage or salary earned.

“Those of you who have studied life insurance have seen the reduced incomes produced by a given sum of insurance capital. The declining interest rate causes this. Add the necessity for a larger income from insurance investments to replace the loss occasioned by death of the wage earner, and you will have the problem that confronts the prospect who wants his family to have a living income.