WAR SERVICE PREMIUMS

Evening Star, Issue 23370, 13 September 1939, Page 16

WAR SERVICE PREMIUMS

* ADDED TO LIFE INSURANCE ? POLICIES INCREASE RANGES BETWEEN £5 AND £lO A £IOO EXISTING POLICIES NOT AFFECTED War premiums ranging between £5 and £lO a £IOO have been added to new policy payments by life insurance companies operating in New Zealand for those holders engaged on active service overseas. No premiums will be imposed on existing policies, unless they contain special clauses providing for higher war risks. While most offices have received instructions to bring into effect the war clause with new business, the additional charge, which generally amounts to £7 10s. has not yet been applied by every company. Service in any arm of the British allied forces wilf not entail payment ol an additional war risk premiumso far as one large life organisation is_ concerned. The condition on all existing policies that an extra premium is payable before it will extend full cover to members engaging in submarine or aircraft operations is also to be suspended so far as those on active service are concerned, and in such circumstances should a claim occur the full benefits will be payable. These privileges are to be extended also to those on whose lives proposals are already m hand, provided they are completed immediately. In the case of policies hemg applied for in the future it should be understood that they will necessarily bo subject to a war risk clause which will provide for the payment of an additional premium should the assured enter on active service and desire to secure full cover in. event of death arising as a result of such service. ACTION DURING 1914-18 WAR. During the Great War there was a o-eneral increase in life insurance rates For those going on active service, the increase ranging from £o to ±,IU per cent This additional premium was paid in some cases by the New. Zealand Government or by patriotic organisations, and it may be expected that some similar action may again be taken should forces be sent from New Zealand to any theatre of war. _ • At present insured persons m -.New Zealand are regarded as less favourable " risks " than Australians, because whereas the (Dominion has already undprtaken to raise a force for service " within or beyond New Zealand, ■ no official mention has been made in Australia of the likelihood of an expeditionary force. It is possible, therefore, that for a time at least there will be a differentiation in the new rates obtaining in Australia and New Zealand.