FUTURE NEEDS COVERED

Sun (Auckland), Volume II, Issue 377, 11 June 1928, Page 12

FUTURE NEEDS COVERED

GROWTH OF LIFE INSURANCE A PRESENT-DAY NEED In every well-managed business a certain sum of money is written off every year for depreciation. In similar manner progressive citizens, per medium of life insurance, in increasing numbers are today providing for furture exigencies. Recent balance sheets of life companies in New Zealand show new records. The day has passed when life insurance could be viewed in the light of anything else but a necessity. The question is now one of “how much” instead of “why.” Delay in taking out a life cover under present-day conditions is foolish. The young man entering matrimony without a cover is little short of criminal. Insurance An Investment

“Life insurance costs money,” is a phrase often heard. Yet money placed in a savings bank could not be termed costly. It would be an investment, or, at the least, a profitable means of saving. So must life insurance be viewed, with the exception that a life cover has a considerably greater cash value in the case of death during the earlier years of the policy. To those who persistently argue that money can be invested to greater advantage in a savings bank, the following table provides an effective reply. It takes the case of a man aged 30, who desires to save £SO a year for his family. By placing his first £SO with one of New Zealand’s leading assurance societies he creates an immediate estate of £2,076. The insurance figures are taken from the books of a leading life office.

New Zealand Figures Every year sees greater use being made of insurance. It is being used to provide for an ever-widening use of exigencies. In 1915, 160,568 ordinary life policies, and 99,740 industrial policies w'ere held in New Zealand; by the end of 1924 the number had increased to 214,769, and 197,027 respectively; by the end of 1926 the figures stood at 231,160 and 224,983, representative of a total cover of £86,757,094. When bonus payments are taken into consideration it can be seen that the total cover on New Zealand lives was well over £100,000,000! Further records are disclosed in individual balance sheets published since then.

Yet there are pessimists who contend that New Zealand is a spendthrift nation.

Bank allowBank allowBank allowYear Life ing 3 p.c. Com. ing 4 p.c. Com. ing 5 p.c. Cpm. Policy. Int. Jnt. Int. 5 . . 2,342 273 282 290 10 . . 2,570 590 624 660 15 . . 2,7SS 958 1,041 1,133 20 . . 3,091 1,384 1,548 1,736 30 . . 3,832 2,450 2,916 3,488