The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1867-05-10
Dividends promised and Dividends

BY Mutual Life Insurance Companies "A COM
trast! Read the following statement OF the
case by Hon. Elizur Wright, Insurance Com
mission for Massachusetts,:
"There seems to be constant effort on the
part OF many companies To make persons who
are solicited to take policies believe that they
are sure to get half the premiums back again
In the shape Of dividends.
"Their advertisements oten unqualihedly
boast Of and promise dividends OF ffty per
cent. on the premium paid. " such a hing
had really been done by Them, many of these
companies rouid nov be hopsisssIy insolrsnt.
They are fortunately quite otherwise. What
has really been done Is this Fifty per cent. Of
premium paid three. four or Ave years ago, Is
returned to the policy holder eho has persisted
| In paying his annual premiums 10 those rho
hare in the meantime discontinued. nothing.
Fifty per cent, payable at the end OF four
years, assuming legal interest, Is not quite for
ty per cent: and when II comes to be paid, II
IL probably forty per cent. OF only about two
thirds OF the premium received In the year TO
which II pertains that Is, II Is 1896 per cent.
OF the premium paid.
"Undoubtedly. with premiums calculated on
an assumption Of interest at four per cent, and
thirty three per cent. added for expenses and
contingencies, rs much as thirty per cent. OF
all the premiums received may be returned,
while the mortality Is light, the expenses reas-
enable. and six or seven per cent Is realized on
investments. find more than that may be re-
turned to some members, u Others are del fraud
ed But Why not state the fact as ! Isl Why
bring about both public and individual misap-
prehension, by ignoring time, which Is money
In this case, and sinking out Of sight oil who
lose their dividends by discontinuancei
"Again, there Is o practice OF claiming to
have made dividend payable ct future time,
when none Is really made, but every dollar Is
still held as premium reserve. one dollar as
much as another. Nothing Is done but to issue
piece Of scrip promising to pay at some fu-
ture time certain percentage Of the premium
Of past year, provided that before that time.
the directors shall rots TO do so or vote Of
the directors Is placed on record that q certain
percentage OF the premiums paid during the
past fiscal year, be appropriated as reserve
premiums, to be returned to the policy holders
whenever the directars deem Il eIpedient'
Such action may or may not have some utility
beyond our ken, but to speak Of II as making
a d,r,dsnd Is simply a.fnaneiai faisshood.
1--WE cannot look upon 1t otherwise than as
trick TO gain the credit Of making a large
credit Of having large premium rsssrre.
"This literature Of life insurance companies
appears to us to need strong infusion Of
frankness to make Il worthy OF the high posi-
ton they occupy, and the humane principles
From the above statement, II Is apparent that
no Companies. however seductive their prom
ises may be, ersr can or srsr do make any such
dividends as so per cent, and that to state they
have done 80, Is simply telling financial false
hood. Intelligent insurers should bear In mind
that the system Of insuripg with On Office offer
ing large bonuses Is very, disadysntageous.
where the insurance Is strictly for the benefit OF
their families. Supposs,a person, age 30, de-
votes 5000 year for the purpose OF effecting
an insurance on bis life this amount will Sc
cure him In On Office charging. high premiums
S. H. This same sum paid to Company
charging low premiums, would. secure him
cured of So. go, to be paid by the latter Office
to the family In case Of early death. Before
the same benefit could be obtained from the Of
fee charging mutual rates, he would require
TO live many years before his dividends will
equal the insurance which he gets at the start
Ia the Office charging low premiums. The OBJ.
ject Of every Insurer should be to secure at
once a. largo an amount Of insurance a. no can;
and he who resorts to On Office exacting high
ly for benefits only prosptcffre and eonfn-
GENT" .s -,
The UNIVERSAL LIFE Insurance. Co., believ-
ING that the policy holder desires greater
benefit at less expense, and without any liabil-
ity of assessment, recommends the Joint Stock
System" As the safest and most consistent with
true business principles. This system which
this Company was the FIRST to introduce In the
United States, Is perfectly plain and safe. The
policy holder gets what he pays ior-Iasur-
anes on himseIf, not on oihsrs; his object is to
provide for the payment OF his Policy At maiu.
rity, and not 10 speculate on dividends, Ia the
Adjustment of trkich he has no control.
The Universal Life Insurance Company offers
the following advantages:
Security 10 . paid up capital Of 5000, 0oo.
and Board OF Directors composed OF men OF
we'll known integrity and experience.
Premiums nearly one-third lower than those
charged by the majority Of Mutual Companies:
Losses paid within thirty days after good and
sufficient proof Of the death OF the assured.
Policies non-for/siiGbis sfsr two snnusl
fsSies Of Rates. further information. &C.,
may be obtained ct the Office Of the Company,
80 Liberty street, New York, or Of the under
=. Il. C. HOOPER 4 THOs. oUINBY.
General Agts. for Maine, Biddsford, Ne.