Benefits

As pointed out above, benefits under the policy may be either an arbitrary sum or dependent upon salary.

In the latter case rates are quoted as a percentage of the payroll. Under some policies each employee is permitted to name a beneficiary, under others his relatives become entitled to payment in a definitely established order.

Again benefits may be taken in a lump sum or in installments, the latter being most effective since the recipient is usually inexperienced in financial matters. One plan offered increases the payment from a burial benefit after two years' service to a life annuity of 20 percent, of the wages after seven years' service, installments being paid for varying lengths of time should death occur between these periods. Since it is a cessation of annual income which is insured against, obviously an annual income is the most satisfactory form of benefit. If the employee retires on a pension this same plan offers a life annuity to his widow (or in installments to his children until they are eighteen years of age) amounting to 20 percent, of the pension.