Southern sentinel. [volume] (Plaquemine, Parish of Iberville [La.]) 1848-1858, 1849-10-17
Life MSMrHnca.

The institution of Life Insurance upon the
mutual principle, so lucidly explained in the
following extract which we take from the Lou
isville Journal, has long since been acknowledge
ed as one of those blessings of an enlightened
age which the ingenuity Of man has devised
for the benefit of his kind. 1t is known by for
mer remarks We made upon this subject, Gas
will be seen by their advertisement in another
column) that a Life Insurance Company upon
the principle alluded to, has been established in
New Orleans and upon Il basis that cannot be
pended to Thames which guarantee fidelity
wherever they are inscribed. No one can hes
itate to admit the fact that a "life insurance" is
a valuable consideration to every man of fam
lily. All can easily understand that by expcnd-
inga small sum yearly, a large amount is Sc
cured to the widow and orphans in case of the
acquainted with the mutual principle, which
charactcrzes the company in New Orleans, and
to which we would now call the attention of our
readers:
To illustrate the value of a policy of insu-
rance on the mutual principle, a comparison
might be drawn between the cost of the policy;
its increase Of value by accumulation Of profits,
and the benefit derived from it by ones family,
and a supposed care where a person has pre-
sented to him for nothlng an unjnprovcd lot
IN Il tlOnrishing city, upon the condition he will
not sell the lot, but will pay the taxes on it as
long he lives, and at his death leave it to his
family. Suppose the policy of insurance is for
$4,000 and the lot is valued at the same amount.
The lot being i'll a growing city increases in
value, we will suppose. 10 per cent. per annun,
and, IN fifty years, say Ii will be worth five times
as much as at first estimated. The policy Of
insurance, however. will increase in Il like ratio,
for we find in the Equitable society a policy for
$4,000 was worth $4l,7O0 i'll AS years, and
another for $4,000 was worth S75,700 in 81
years. and we have shown that the mutual life
insurance companies in this country have abun-
dant materials for a far greater success and
more accumulation of profits than the Equita-
bic society. But if the.lot increases in value
to four OF five times its first estimated value,
the taxes will increase, particularly in a pros
porous city, in an even greater ratio: thus re-
curing a very heavy annual outlay of money
which might be really burlensome. On the other
hand, however valuable the policy may become
by the addition Of accumulated profits, the rate
of premium is on the original value only, being
averaged for life, and is never increased. Thus
the holder Of the policy will be able to leave as
much or more in cash to lr family, and at Il
much less expense or annual tux than the person
who accepts as a present Il town lot of equsl
value in the beginning with the policy, and binds
himself to pay the taxes on it as long as he may
live.
Town lots, however, are generally mOnopo-
lized by spectators and capitalists who think
they do well if they make a small per centage
on the investment, but who in many eases are
disappointed in their expectations, and are some
times glad. after years of patient waiting, to get
their money back. A policy of insurance, on
the contrary, requires no outlay of capital, and
can be obtained by any one disposed to contri-
butte a small sum each year to the payment of
the premium. We have shown how every man
can easily make his family rich or independent
when the stern hand ofdcath has deprived them
Of their natural protector and supporter; and it
is no small consolation the father and husband
to know and feel that, when he is laid in the
grave those who are near and dear to him will
not be forced to depend on the charities of the
world or to struggle for a support, but that they
will be made comfortable and happy by means
OF his wise and prudent forethought.