Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-02-21
life INSURANCE..

1t has been but little more than one
hundred and fifty years ago since the
first Life Assurance Society was estab-
lished in England, and hardly halfa Gems
fury since the first company of the kind
was organized in this country. There
are now twenty-five companies in the
city of New York alone, and more than
fifty in operation in this country In
the Southern and Western sections, there
have been no organizations of the kind,
until within the past few years, nor has
the attention of the people of this region
been strongly directed to the subject As
the system receives consideration it will
grow in favor, and as people begin to ap-
preciate, through the stress Of unsettled
and unprosperous times, the wisdom of
making future provision for their fami,
lies, its solid benefits and advantages will
cause large increase of the business.
In this State though there have been for
several years, agencies of number of
sound and reliable foreign companies,
the business has scarcely CONS
meneed but if duly fostered,
as it should be under just regulations, it
will soon employ large capital and ex-
ercise wide and healthful charity sur
passing all others in security and sub
stantial good Experience, and the judg-
ment of some of the wisest philanthro-
pists of the century, have testified to
its merits; and it is fact that no Judi
ciously managed company on any of the
various plans, has ever failed The daily
operations Of these institutions in the
United States prove them to be as re-
liably remuneratiye investments, both TO
those who have money in the business,
and to those who, in the course of nature,
become their benefciaries, as any human
enterprise can be.
From a recent leading editorial in one
of the ablest daily newspapers in the
country, we extract the following brief
general description of the business as
now conducted
Life insurance companies may be divided
into three classes-the stock, the mutual,
aud the mixed Writers on THE subject
give us some interesting information in
reference to these classes. In "stock"
an applicant for insurance cen |
tracts to pay so much money during his |
life, in consideration of certain sum to |
be paid to his family at his death. The |
connection of the applicant with the COM |
pany here ceases. He has nothing but the |
assurance of the fulfllment of contract |
which will inure only to those dependent |
upon him. The profits of the business are
divided among the stockholders, who man
age the company just az any other stock
is managed, and divide The
profits accordingly. A mutual" company
the cooperative principle. All
The proceeds that arise from the surplus
premium or profit are divided among
The insured themselves; 80 that a man
may insure his life in a mutual COM |
pany, and, while he has a guarantee OF
the fulhllment of the contract that is made
BY stock company, he also has a share
in the profits of the business. Accord
ing TO the law of New York, all companies
in this State mnst have a CAPT
isl of at least 100000, and mutual life
insurance companies pay only seven per
sent upon the capital In the mixed
class, we have the principles OF the two
'ormer combined. They differ from "mu-
ual " companies only in this, that, beside
paying the stockholders legal interest, they
divide portion OF the profits of the bust
hess. This has in some cases caused the
,apitsl stock TO appreciate in value over
300 per cent, while IN England il has been
Known TO appreciate 500 per cent.
The profits of these companies arise
rom the fact that they have carefully ar
anged their tables of mortality that in
nsnring persons life, they are guided by
experience and that, in the ordinary
,ourse Of business, while they guarantee 10.
he insured the fulfilment of their contract,
hey are enabled to accumulate larger
apital, which is needed for future losses.
n corporation purely mutual, this whole
uTplus is applied 10 the benefit OF the in
ured, either by dividend or by cash, or BIZ
dding to the amount insured without IN
reasing the premium, or By deductiEg
rom future premiums, while the amount
emains the same.