CAPITAL 317 



tinues this for twenty years, the amount in the savings 

 bank at 3 or 3^ per cent will pay the future premiums. 



The 10, 20, or 30 payment policies are good forms for one 

 who has a salaried position. He can then get his insur- 

 ance paid for before he is too old. Usually such a person 

 does not have a good safe way to invest money, so that the 

 low rate of interest is all right. 



(4) Endowment policies include still more of the invest- 

 ment feature. At the end of the 10, 20, or 30 year period 

 the policy has a cash value as great as the amount for which 

 one is insured. With a twenty year endowment policy 

 for $1000 one pays enough to carry his life insurance and 

 invests enough more so that at the end of twenty years the 

 investment is worth $1000. 



Since most insurance companies are on a 3 or 3^ per cent 

 basis, it is evident that one gets a low rate of interest. 

 But many persons in cities are not able to secure good safe 

 investments for small sums. Persons on a salary are not 

 likely to save unless they have obligations coming due. 

 They will pay the premium on an endowment policy when 

 they would not otherwise save the money. For such 

 persons these are good forms of policies. 



A farmer usually has plenty of ways to invest money at 

 better rates of interest. His investment in land is usu- 

 ally a safe investment. Few farmers have enough money 

 to properly conduct their business. Furthermore, the 

 farmer's money is not so likely to be wasted on trinkets as 

 is the money of the salaried man in town. The farmer is 

 much more likely to use his money in improving his farm 

 or his stock because he sees so many things that he would 

 like to do. In short, the farmer is not looking for 3 per cent 

 investments. If he has nothing else to do with his money, 

 he can pay off the mortgage that is perhaps held by a life 



