The Daily spy. [volume] (Worcester [Mass.]) 1845-1850, 1850-08-17
which amount to shout t,oenty per cent Oflhe pre-


minms --sg-<
Taking even this cursofy view of the subject, 1t
must be evident to every one who reflects for one
moment, thai but small margin can be left for pro-
fseyen upon the presumption that the whole amount
OF premium Is paid in cash, and earning compound
interest. Slut calculations have been made taking
the most favorable view, and allowing but fire per
cent for expenses with view to ascertain the result
where Company upon the the Mutual plan propos
ed to addas dividend ttro per cent per Gnnum on
y to the amount insured receiving thewhole premium
IN cash. The lives of 1872 persons, each aged 80
years, were taken; the rate of premium was S23 90
per Sl000s two per cent per annum was added at
the expiration of each iDeyearS; the result was, a
the lives becoming extinct in due of NATURE
that In seventy years there would be deficit of 1884,
240 20 if the policies had been for $4,000 each, in
stead of $1,000; and the number ofpocies !, POO the
total deficiency would have been eleuen millions,
eight hundred and ttcenty screen thousand ttcohund
red dollars (Sll 1921 ,200) and the loss would have
fallen upon thosewho had paid their premiums through
a long course of years.
What would have been the result, if the same
Company had pretended to divide so, or 80 per
cent per annmum, and had received only one-half
the premium In cash, the most active Imagination
can hardly conceive. 1898
But beyond this natural and inevitable deficiency,
many companies that declare dividends, issue scrip
for the profits, upon which interest is payable.
The object of these remarks Is to attention
to the subject of Life Insurance, still in its infancy
IN this country, and to induce the public to investi
gate the basis of Life Insurance Companies,
distinguish the safe from the hazardous
Let it not be understood by these remarks that no
Life Insurance Company can ever safely declare
dividend; this is not true. But let it be understood
that no Life Insurance Company can safely de-
clare large dividend, and particularly in the early
years of its operation when the per centage of deaths
is very small, and the number of its insurers very
large. and that it neUer safely declare dividend
unless it leaves on hand ga fund for chich an Of
flee, charging equal rates iCould reliere it Of its
liabilities
That company Is not the best TO insure in, which
offers the largest return in bonuses and dividends but
that which offers to insure lives for fair premiums
and to distribute among those who insure the surplus
which really remains after leaving enough to meet
its liabilities, for the future Let the inquiry among
applicants for insurance be not what office nsures
the cheapest and divides the most, but what office
holds out to the public the best evidences of stabi-.
ty, and good management. Such Offices have no
to despond because the number of policies is
sued falls far below any of their youthful competitors
few years will tell the story-a sad one to many
widow and olphan-when the hopes of parents and
husbands, who have sacrificed pleasure and practiced
sedenia for the sake of their fames will be cruel
y disappointed by the bankruptcy of institutions
whose projectors and managers were ignorant of the
first principles of the science of Life Insurance upon
which their Institutions purport to be based.
PHILANTHRoPos.
: See pages IL and 13 of pamphlet called sPracti
cal Remarks the present of Life Insurance in
the United States, ssmfng Evils which exist and
Rules for improvement" by Harvey G. Tackett, R. 2.
S. E., etc., Philadelphia '&