The Daily spy. [volume] (Worcester [Mass.]) 1845-1850, 1850-08-17
Lice INSURANCE.


representations OF those, who if their representations
are true, are committing gross frauds by the mode of
managing their offices, and who, if they are not true
are oupable for the representations they make.
The preience that any office, taking the usual pre-.
mans, can honestly make dividends of profits to any
Considerable amount the assured is, of ITSELF sufi-
Gent evidence of gross ignorance of the subject or of
Intentional fraud, and may possibly be prompted by
BOTH Life Insurance, unlike Fire and Marine Insur-
ance, Is matter of mathematical calculation, based on
wei ascertaned fats and is nearly Uniform in its re-
suits IN any given number of cases. Men all die but
houses do not all burn, do ships all get wrecked
and the average time which live, taking large
number OF cases. is generally nearly the same. If
thousand life policies granted, on the whole life Of
the insured, they have all got to be paid But thon-
sand fire marine policies may be issued and never
one of them have to be paid because no loss may ever
accrue. The premiums taken on life policies, being
calculated on the principles already indicated, are
nearly uniform in the different Offices and if all are
managed with equal prudence and SKILL win give near
| y uniform results. The chief difference will proceed
from the which taken to exclude doubtful or bad
cases. to insure in the more healthy sections of the
country and to be economical in the expenses of man.
aSement But, all these combined will not make DIFF
ference enough TO afford any considerable dividend to
the assured Yet we shall find, usually, that the Off
ces which are most reckless in the taking of their poll
cies, who most freely insure in unhealthy portions of
the country, and lavish of expenditure in the
management of their concern are the most likely to
hold out the encouragement of large dividends to the
insured.
i Ptt Il bo a
desirable to insure in? By no MEANS Though none
may be able to make dividends to any great amount,
yet they may manage their business as to impair the
security which insurers have, for the payment of their
policies, when they became due There are those.
who, if they have actually made the dividends which
they profess to have made, now be deeply insov
ent, and every man who takes policy of them. be-
side running the rsl of eventual loss is taxed to make
up the deficiency in their funds, thus created
/ From the New York Courier & Enquirer
4 Life Insurance.
''The primary object of Life Insurance is to en-
courage habits of prudence in individuals, by ena-
bling them to make provision for their families after
their DEATH This object appears to have been for
gotten by large proportion of those Offices based
upon the Mutual plan, which have been chartered
and put in operation within the last few years. With
them the chief object seems to be, to induce indiyd-
uas to insure their lives with the prospect of receiv-
ing back large part OF the premium paid so as fin
ally to reduce the premium to very low sum. They
hold out to the world that policy of Life Insurance
can be obtained, not only by very tring outlay Of
cash, but with the nfallibe addition to the sum in
sured Of a large per centage every year after the
first. The consequence has been, that multitudes
of people, anxious to secure comfortable provision
to their families by the smallest possible expenditure,
nave pocured their lives to be insured by companies
who have but recently embarked in the business but
who guarantee not only to pay the sum mentioned
in the policies, but profit annually of 40 So and
even so per cent In addition to this sum- whilst they
take from the insurer small premium, and one-haif
5 of that only In cash.
al Now fthese promises, the part of these In
Companies, could be redeemed in the course
of years, and the means ofthe companies remain
unimpaired, and in condition to meet the increas-
ing liabilities, wi ich, from the nature of the case
S advancing years are sure TO bring upon them. then
e would the conduct of those who are RELYING upon
these brilliant promises be wse and in The highest
degree prudent. Buff, on the other hand it should
be demonstrated thIt these promises are all falaci-
ous that the companies who persist in making them.
and endeavor faithfully to fulflhem, must eytably
become bankrupt in the process of years how utterly
unwlse and hazardous must such investments appear
And it is truly amazing, that people SO proven
blaily cautious and calculating as our own should
embark so deeply in this business Of Life Insurance.
without bestowingupon it hardly passing consdera-
ton that on the one hand companies are started up-
der the management Of honest aud intelligent men.
with promises such as we have named, in return for
: small premiums, but partly paid in cash; and that
) on the other, vast numbers be found who rey
upon these promises and place the welfare of their
families upon the hope Of realizing large profits in
: their own lfetimes and the payment of the sum in
Is sured at their DEATH
IT IS amazing, because it is subject peculiarly
within the sphere of arithmetic where the data are
reliable as those upon whichhe astronomer Pounds
g his calculations, and the deductions quite as sure
: The data are the Tables Of Moralitu. on the one
r hand, by which within the incest approximation n
certainty, the chance of the applicants life can be
e asceramed, and on the other, the sum which should
be paid annually by the applicant TO enable the in
suer TO pay the amount named in the poltcu in the
event of his death, which is ascerained by calcuat-
ing how large sum annually during the applicants
expected term life at compound interes, will nro-
: duce the sum insured by the policy. fa
= Now, If there was variation in the per centaoe
OF deaths on the hand and no expenses incident
If to the business deterioration in the money in
il vested on the other, the amount received by the in
surer, placed at compound interest, would be about
equivalent to the amount to be paid at the death Of
the individuals insured, leaving not cent for pro6f
But there are many circumstances to be considered
affecting both sides of the account and in well con,
Quoted institutions leaving the two sides still nearly
0 equal, but with preponderance in favor ~ tbe Il;