LIFE ASSURANCE FOR SOLDIERS

Evening Star, Issue 23373, 16 September 1939, Page 14

LIFE ASSURANCE FOR SOLDIERS

TERMS OF NEW POLICIES EXTRA PREMIUM LIKELY To consider war risks affecting life assurance companies, a meeting ot trie Life Officers’ Association is to be held in Australia in the next few days (states the ‘Dominion’). The head of one company in Wellington said that ho did not know if an extra premium would apply to new policies covering troops on home defence, but it would certainly apply to those covering men on active service, and would be incurred when they left New Zealand. ' In the last war, it was stated, the extra premium in some offices was £lO per cent., and in others £7 10s and £5. Some offices would not accept the business at all. One company paid out £3,000,000 in war claims, but did not get a fiftieth of that in extra premiums. The risk was a big strain on life offices. Generally, apart from policies on the lives of professional soldiers and aliens, policies issued by life offices in New Zealand in times of peace did not include any conditions or clauses relating to war risks, and the person assured was thus able to engage in any form of military service (apart from aviation and submarine operations), and secure full cover without the payment of an additional premium. Most offices would abrogate the war clause included iu policies issued during the Groat War, 1914-1918, and allow members the same rights and privileges as policyholders under contracts issued since then. SPECIAL CONDITIONS. Most offices, however, in time of peace had included special conditions in policies regarding cover in case of death arising from aviation and submarine operations, and policyholders should refer to the special conditions of their individual policies. Quo of the leading offices, it was stated, had announced the suspension of all war restrictions on existing policies, including aviation and submarine restrictions, for those serving in any arm of the British or Allied forces. That generous action was to be commended.

However, in respect of new policies, an additional clause would no doubt be included providing for the payment of an extra premium to secure full coyer in case of death through war service. If the policyholder did apt go on active service or decided to forgo cover while on active service, the additional premium would, of course, not need to be paid. The payment of an additional premium could be terminated at any stage if the policyholder subsequently decided to forgo the extra cover while still on active service or returned to civilian life. Furthermore, the additional war rich premium would not entitle the assured to any additional surrender value, bonuses, or other advantages, apart from the war cover. ALTERNATIVES OFFERED. Policyholders joining the forces and experiencing difficulty in continuing premium payments had the following alternatives for policies of a few years’ duration: — Paying a portion of the premium and cashing bonuses or borrowing on the policy to pay the balance; or Allowing the premium to run overdue (provided the policy had a surrender value). A policy could not lapse till the available surrender value had been absorbed by the accumulation of overdue premiums. Extra war_ risk premiums must, however, be paid. There were also the options of reducing the sum assured at the extra risk and the premium in the same proportion of converting a policy to a paidup basis.