Baltimore commercial journal, and Lyford's price-current. [volume] (Baltimore, Md) 1840-1849, 1848-12-16

Now let US look at the benefit it will yield to the
surviving family:
The stipulated sum insured ....... 5 5000 90
Deduct the accumulated premium notes,
with interest the last months. ..... 1892 "a
s l7O7 0G
Leaving a balance of only SI7O7 O6 TO be paid to
the family, instead OF the 0u00 promised III the
policy. An insurance in the of j. 1907 o., could
have been purchased at that age for the annual pre-
MUM Of SAT, instead of $l27 IA, as above. The
latter premium paid annually sufficient TO purchase
policy for - 1920, at the same age.
The Objectionable features in the credit system Of
mutual life insurance then, these LIST, il creates
sufficient fund TO establish such a company upon
stable foundation, TO secure il against liability 10 be
oycrthTown by any uniayorable turn OF risks; IDLY,
1t makes those who able liable for the defcIen
cies of those who unable TO pay; lastly, it de-
feas in great measure the chief object Of such in
stitutions which is that Of great savings bank for
the benefit Of widows and children
10 show that the first objection is well grounded
we have merely TO observe, that the accumulated
fund or assets of the company principally in the
premium notes of the assured, instead of good bonds
and mortgages and public stocks of sound charac-
ter single illustration will be sufficient 10 estab-
lish the position that those who have the ability to
pay must make up the deficiencies Of those who have
not.
Suppose a company upon this plan, of three years
standing, TO have 1000 members, 80 years Of age,
insured in the sum Of $4,000 each. If the mortality
OF the third year be 10, which is below the number
given tables upon which It's business is DaSeu,
aud that during the two previous years it had lost
10 members, then have losses amounting to
$4,000; or, after dcducting the premium notes Of
the 10 deceased members of the third year, leaves
S469l6 10 TO be assessed on the notes of the $50
surviving members, which (the suppositon being
that the cash payments Of the three years operation
have only been adequate to the expenses of that
time and the losses of the previous years. should
each member pay his proportion, would be Sl7 81,
but if only 500 Of the 9SD surviving members are able
TO pay, the whole assessments must then fall upon
this 500, which would make it Ss93 SO TO each near
Iy double what in equity and sound principle il
should be.
That it cannot accomplish the highly useful pur
fact, that TO make any available savings for the future
benefit of party's family, his annual deposits must
be in cash. if they in promissory notes, in such
will b. the returns TO his surviving family; hence its
utility as a savings institution depends upon the
tent OF credits given on the premiums; if they
wholly in his notes, then its utility is utterly destroy
cd, and it advances III its usefulness in proportion as
lis credits are diminished and the cash payments
increased. The value of an insurance with a credit
company as savings institution, is strikingy bcnc
fetal only IN The epent Of early and premature death,
and this is contingent upon the solvcncy Of the
pany. If party should be so unfortunate TO die
IN two years after taking out his policy, the
benefits TO his surviving family would be nearly
equal TO that of any mutual company; but should he
be fortunate TO be blessed with good health and
long life, most of the advantages of savings inst
tuition would be sunk, have shown