1. This Simple Story Proves
Life Insurance Must Be Sold
“Even in the face of imminent death, life insurance will not be bought.”
“Even in the face of imminent
death, life insurance will not
be bought.”
The long-believed adage was
proven true during World War
II when servicemen in the
trenches at Bataan in the
Philippines, following the
Japanese invasion, were
offered the chance to
purchase insurance by simply
hand in agreement. Incredi-
bly, fewer than half of the
besieged army on Bataan
chose to be insured.
MDRT member Patrick J.
Collins, CLU, of Chicago,
Illinois, recently related the
details of this story in remarks
made to the Chicago
Association of Life Under-
writers. Collins first learned of
the story in a speech given by
MDRT Past President Marshall
Wolper, CLU. Amazed by the
facts and events surrounding
the World War II sale of
National Service Life
Insurance, Collins researched
and documented the
following story.
National Service Life Insurance
was enacted by the U.S.
Congress on October 10,
1940. It provided for a
maximum of $10,000 of life
insurance for all U.S. service-
men with a contribution paid
by payroll deduction. A 120-
day Open Enrollment was
provided, after which
evidence of insurability was
required. After the Japanese
invasion of the Philippines and
other U.S. islands, Congress
became concerned about the
dependents of the many
servicemen in these areas not
covered under NSLI.
Public Law 360, enacted on
December 20, 1941, provided
another 120-day Open
Enrollment. The Veterans
Administration, which was in
charge of administering the
insurance program, approved
simplified procedures for
enrollment, including use of
radio messages.
The final radio list for the
Army in Bataan was sent just
before the last guns at
Corregidor were silenced. All
that was necessary for a man
to be insured was for him to
hold up his hand at muster
call. Less than half chose to
be insured.
The Veterans Administration
asked that written applica-
tions follow the radio lists
when conditions permitted.
What application papers there
were, were brought out on
the last submarine leaving
Corregidor. This final
submarine was depth charged
by five Japanese destroyers
for 22 hours before escaping.
In a talk given in New York
City in 1947, Lt. Col. Louis J.
Grayson, officer-in-charge of
the life insurance section in
the Adjutant General’s Office,
made the following remarks in
regards to those life insurance
applications.
“When these applications
were examined by the
Veterans Administration, an
amazing discovery was made.
In some cases, the radio
communication failed to
specify the amount of
insurance applied for and the
Veterans Administration had
tentatively assumed in such
cases that the person was
applying for the maximum for
which he was eligible. The
written applications, however,
revealed that in many cases,
in spite of the danger of
death, injury or capture,
applications had been
submitted for only $5,000 or
less. Apparently, all the
realities of war cannot replace
the insurance agent.”

2. Recognizing the reality
described by Lt. Col. Grayson,
the War Department
established a life insurance
selling organization within the
Army in November of 1942.
Every unit down to the size of
a regiment was directed to
appoint a life insurance
officer. More than 1,000 life
insurance officers attended
training schools established in
various locations in the United
States.
Meanwhile, life insurance
selling was incorporated as an
important activity at reception
centers for new draftees. In
May, 1942, at many reception
centers, less than 20 percent
of the men processed applied
for NSLI and the average
amount applied for by this
minority was between $3,000
and $4,000. By mid-1943
many reception centers were
enrolling more than 99
percent for an average
amount in excess of $9,900.
This left the services with the
problem of the many men
processed through the
reception centers before the
life insurance selling
organization was in place.
On April 12, 1943, Congress
passed Public Law 36
providing another 120-day
Open Enrollment for all those
on active duty. A radio
message went from General
George Marshall, head of all
the Armed Forces, to every
overseas theater commander
and the heads of U.S.
commands establishing the
goal of 100 percent insured,
each for the sum of $10,000.
Each theater commander was
directed to send General
Marshall monthly reports of
progress toward this goal.
During the campaign, two
teams of three officers each
were sent to the Pacific to
reinforce the already
established life insurance
officers. One of these teams
landed at Guadalcanal while
the battle still raged.
To supplement official military
funding, a major New York
advertising agency designed
posters, and 50,000 posters
were donated by the Institute
of Life Insurance. More than
700,000 posters were used
worldwide.
At the end of the campaign,
98.2 percent of the U.S.
servicemen in the South
Pacific were insured with an
average amount of $9,300.
According to Collins, these
historical facts give dramatic
testimony to the reality that
the great majority of people,
even if they are facing a high
probability of imminent death,
will not buy life insurance
unless a life insurance
salesman asks them to.
Collins concluded his speech
by saying, “This story tells a
lot about our nation and
about us.
“The great majority of
people, even if they are
facing a high probability
of imminent death, will
not buy life insurance
unless a life insurance
salesman asks them to.”
The fact that our country’s top
military officer devoted his
personal attention to
providing for the welfare of
the dependents of his troops
is most meaningful to those of
us who consider ours to be a
unique society. Can you
imagine Marshall Zhukov
having this concern?”
The next time one of your
prospects quotes a
sophisticated financial expert
stating that the life insurance
agent is about to be replaced
by computers and mass
marketing techniques, tell him
the story about how Gen.
Marshall organized the most
effective life insurance sales
force ever assembled, and
why the success of this sales
force was one of his greatest
satisfactions.
IR# 5000.01
CR# 4400.01
Victorious Japanese troops atop
Hearn Battery, May 6, 1942.
ROUND THE TABLE,
May-June, 1983
JGWILWAYCO COLLECTION