Baltimore commercial journal, and Lyford's price-current. [volume] (Baltimore, Md) 1840-1849, 1849-06-30
LIFE IN SURAN No. ".

We have, i'll the previous papers Of this series,
demonstrated
|. That the business of Life Insurance is based
upon natural Lars, and depends upon their rcgu-
larity for its security;
III. That the MUTUAL PRINCIPLE is the only one
in which the public have any interest; all Joint
Stock or mixed companies being private specula-
tions, and charging cXhorbtant rates for their guar
anty
ill., That the CASH SYSTEM of payment is the
only one by which The business can be equtably
carried on, and the promises of the Company, as
well as the expectations of the insured fully carried
out and realized.
In accordance with the views expressed in the
second article, we shall devote no more space to
Joint Stock mixed companies, further than to say
that foreign companies who have agencies in this
country, almost invariably assume the mixed cha
racter, and charge higher premiums than our own
companies which grant the same privileges; and
we shall prove in this article, that American
panies demand rates high enough
After a careful examination of the organizations
of all the American Mutual Companies as set forth
in their pamphlets, find that those associations
which enjoy in the highest degree the appreciation
and confidence of the educated and thinking classes,
exhibit invariably in greater or less perfection, the
following features.
l. BY virtue of the mutual principle, every in
surer in these companies becomes member, and of
course entitled to examine the affairs of the com
panv, and to vote for the officers, and to become
candidate for office. In short, they are miniature
republics.
3 1t is required by their charters that their affairs
be annually investigated, the profits and losses
certained and exhibited at the annual meetings Of
the insured who the only stockholders
3. The premiums required to be paid invara-
bly, in cash.
4. A policy on the life of husband in favor of
his wife is nvolable by any action of creditors even
though the husband die insolvcnt.
5. Parties wishing to surrender their policies,
receive the equitable value thereof at the counters
of the Companies, of any of their agencies-upon
application.
institutions Savings Banks for the benefit of widows
and orphans, as well Banks of deposit, for the
benefit OF creditors, when the policies are made i'll
their favor
7. Their premiums are established at the same
rate which, will be seen, is safe. For instance,
at the age of thirty, the annual premium for policy
for the whole term of life in the sum of SlO0-is
1896 Allowing the life to continue according to the
Carlisle expectation, "a years, and supposing that
only 3 per cent could be realized for the money
this annual premium of S2.36 would amount to
S13624; at p per cent. it would amount to SEALS
at2 1885
Another view will show more strikingly the i'm
mediate security offered by these rates.
Suppose one thousand persons aged 80, to insure
their lives in the sum of $1,000 each-the combined
premiums, without policy fees, for the first year
would amount to S23,600.00. The expectation of
loss, for the same wear, according to the ingenious
hypothesis of Dcilovre, which is generally used
in rough calculations, is 1-S6 But the actual ex-
pectation according to the experience of the Euu-
table Society for some so years. is 1-104, saw LOO
or ten lives-each $1,000, amounting to 10000
leaving a surplus of $4,000 But even supposing
the loss TO double the expectations as might possibly
but has never vet been the case, and amount to
100000, we should still have balance of $4,000
remaining.
The MuTuM LIFE INSURANCE COMPANY OF BAL
TIMoRE however, in addition to the foregoing par
ticulars, possesses the following peculiar features,
which in the points of pgl,tu q,r00JIe De3uouo,ce
and devotion to the public interest place if far in
advance Of all other similar societies hitherto estob
lshed in this country.
l. Reservation OF PROFITS TO LONG LIVES This
principle is eqtitaLIc All can see that those only
are realm Dr0ftaLIe MEMBERS who live to paw
TO produce the sum insured 1t is the usual practice
to declare dividends, and pay over the profits in
scrin ar otherwise as early as five wears after the
membership commences. and some even as soon as
the first year Bv this plan, parties who have paid
only few premiums before death. draw from 30 to
40 ner cent of the premiums paid in addition to
the amount of the policy; thus adding to the bur
dens of the long lives and diminishing their right
fullv earned profits In this COMPANY however
those only who live to paw premiums which to-
rether with their proportion of the ascertained
profits. amount to 50 per cent of the sum insured,
can withdraw any portion of them Thus only
those who ther become actually profitable or have
fair prospect of becoming so-share in the profits
beyond the amount of their policies
When member becomes entitled to receive
profts-he has choice in the manner of their pay
ment For instance suppose a party insurcs at
rn Al,