LIFE INSURANCE PREMIUMS

Southland Times, Issue 23922, 14 September 1939, Page 4

LIFE INSURANCE PREMIUMS

INCREASE DURING WAR SERVICE

Increases in the premiums payable on new life insurance policies during the time in which the policy-holder is engaged on active service overseas have been made by some insurance companies in the Dominion. This will mean that those taking out policies with these companies at present will have to pay an additional £7/10/- per cent, while they are serving overseas. Other companies have not yet decided on the amount of war risk, and it is stated that they are advising persons inquiring about life insurance that policies are likely to be subject to higher premiums. It is not expected that there will be any increase in the premiums payable on existing policies unless they contain special clauses providing for higher war risks.

During the Great War there was a general increase in life insurance rates for those going on active service, the increase ranging from £5 to £lO per cent. This additional premium was paid in some cases by the New Zealand Government or by patriotic organizations, and it may be expected that some similar action will again be taken should forces be sent from New Zealand to any theatre of war. At present insured persons in New Zealand are regarded as less favourable “risks” than Australians, because whereas the Dominion has already undertaken 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.