NUMBER AND PER CENT OF FAMILIES CARRYING LIFE INSURANCE,
AND AVERAGE AMOUNT OF POLICY ACCORDING TO NATIVITY
OF HEAD OF FAMILY
=================================================================
| TOTAL | PER CENT | AVERAGE
NATIVITY OR RACE OF HEAD OF | NUMBER OF | WITH LIFE | AMOUNT
FAMILY | FAMILIES | INSURANCE | OF POLICY
-----------------------------|-----------|-----------|-----------
All families | 3,048 | 81.9 | $419.24
| | |
United States, colored | 274 | 93.8 | 201.48
Bohemian | 243 | 88.9 | 577.58
Polish | 522 | 88.5 | 353.48
Irish | 129 | 88.4 | 510.72
United States, white | 644 | 85.2 | 535.56
German | 240 | 85.0 | 416.49
Lithuanian | 117 | 79.5 | 170.38
Scandinavian | 232 | 75.4 | 401.58
Other | 225 | 75.1 | 410.96
Jewish | 218 | 63.8 | 465.09
Italian | 204 | 57.8 | 403.94
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It is interesting to note that the Bohemians are among the national
groups showing the largest per cent (88.9) of families having
life-insurance policies. They also show the largest average policy
($577.58) of any national groups, including the native-born white.
The method by which this particular provision is made is often through
the fraternal order, the benefit society, and the form of commercial
insurance known as industrial insurance. The fraternal orders that are
used by foreign-born groups are usually societies of their own
national group, such as the Polish National Alliance, the Croatian
League of Illinois, the Lithuanian National Alliance. They differ
from the benefit societies, such as the Czecho-Slav Workingman, the
Znanie Russian Club, and the Congrega di Maria Virgine del Monte
Carmelo, in that the fraternal orders are organized under the state
laws governing fraternal insurance societies, are incorporated, and
usually have a more than local membership. Most of the benefit
societies are small local societies without national affiliation,
often not observing good insurance principles and without the needed
succession of young lives.
These types of insurance were made the subject of special study by the
Illinois Health Insurance Commission of 1919. The judgment of the
Health Commission as to the value of these organizations is, that the
fraternal societies, although they are democratic, co-operative, and
nonprofit-seeking organizations, thus being particularly attractive to
wage earners, are often not on an actuarially sound basis.[23] The
benefit societies of the foreign born present an even more precarious
means of providing for future needs.[24] Sooner or later they find
that the dues must be increased, their membership declines, and the
period of decay sets in.
Industrial insurance provides a safer method than either of these, but
it presents a number of other disadvantages.[25] The policies are
usually small, sufficient only for burial expenses, and the rates are
relatively high because of the bad risk among the wage earners, and
especially because of the expense of weekly collections. Here, as
everywhere, the poor who must buy in small quantities get relatively
less for what they pay.
It is often urged against industrial insurance that it makes no real
provision for dependents, and merely pays for a somewhat elaborate
funeral. It must be borne in mind that the funeral, however modest, is
an expense that often places the family in debt, and that even the
thriftless will try to make some provision for it. The following
expense account of the funeral of a Polish man is typical of the
accounts received during this inquiry, and exhibits no unusual
expenditure when compared with American customs:
Embalming $ 11.00
Casket 65.00
Crape and gloves 2.50
Candles 3.00
Hearse 11.00
Carriage 9.00
Grave 12.00
Outside box 6.00