Several Seniors have already signed contracts for policies in the endowment insurance for the 1924 class give at its 25th reunion, it was announced last night. A drive to enroll the men graduating at Mid-years will be begun immediately.
In commenting upon the plan, Mr. Alexander S. Brown, New England representative of the New York Life Insurance Company, who is handling the insurance for the class of 1924, said yesterday to a CRIMSON reporter, "Endowment insurance has worked well wherever it has been tried. In this case I especially approve of the plan to make the policies directly in favor of the President and Fellows of Harvard College, for the sake of the otherwise harassed class treasurer. This plan has the sanction of President Lowell.
Has Succeeded At Other Colleges
"We have managed endowment insurance," Mr. Brown continued, "for classes at Princeton, Tech, Williams, and several western colleges, and in each case the lapses have been exceedingly few. Other kinds of pledges are apt to result in desultory payments, but here there is a contract to pay a small amount a year, which is voluntarily entered into and regularly paid, as experience shows.
"There are no profits for the Company in such an arrangement, for the policies are mutual, and dividends go to the insured, or in this case, to the beneficiary.
Pity The Poor Treasurer
"It is useless for a man to assume unnecessary responsibility. The class treasurer will have burdens enough of his own within a few years, and the class fund would be a burden to him if the policies were payable to him. To save him trouble, time and criticism--which is unavoidable for a man in charge of a trust fund--it is far better for the policies to be made payable direct to the University, which will then establish a special investment account for that purpose.
"You can be reasonably certain that the present class treasurer will not abscond with the money, but in case of his absence or of accident to him, the fund would be tied up. With the money payable to Harvard at Harvard, the class can be positive that the cash will be there when it comes back in 25 years to make its gift."