WAR RISK

Bay of Plenty Beacon, Volume 2, Issue 174, 17 June 1940, Page 8

WAR RISK

life insurance policies

DEATH ON ACTIVE SERVICE

In the event of the death of a member of the military forces who hacl taken out a life insurance policy prior to the outbreak of war, the insurance company will pay out the full amount insured together with all bonuses accrued up to the date of death. In fact the companies will pay out in the same way as ■ if the policy-holder were a civilian and died a natural death. If thewar continues for some time and New Zealand casualties are heavy, . life insurance companies will be - severely hit in carrying out this undertaking.

Members of the army and navy may insure their lives at present, but, unless they pay the extra war loading, which at present stands at £7 10s, the companies Avill not pay out the full amount for which they are insured. If the extra premium is not paid and the policy-holder dies on military service, the company will pay out the amount of the premiums paid in, with compound interest on this sum at the

rate of per cent to the date of death. In this case, military servico means service with any armed force commencing from the date of embarkation from New Zealand.

A special provision applies to those engaged in aviation. Thosewhose policies were taken out prior to the war will be fully covered,, but the company will not pay out in the event of their death unlessthey are on active service. Some of the leading companies will not accept a risk on everyone's life who is entering the Air Force even if the applicant desires to pay the extra war-time premium.