Evening star., 1868-10-08
LIFE INSURANCE.

~Anl ne may invest IN that Way, OF WnlCn
ne can avail himself in his old age, or apply to
me benefit OF his family when he is no longer
with them" Now Is a constant reader of the
SfAR and one anxious to provide in some way
against the wants OF my family, after I have
been .aken from them, wish TO know what
reason the writer of that article had tor saying
that sit needs no argument to convince a pru-
dent man of the advantages OF insuring his
hfe." The questions that have presentei them
selves not only TO my mind, but to hundreds of
others anxious about the matter arr: Ist, is IL
safe to invest money in these companiss as a
means OF support for our families IN future,
I'd. What reasonable assurances have we that
our families VIII ever receive any return there
from, after our part Of the contract has been
fulhlledi
To illustrate: In September, 1866, a man, by
the name OF Warner, living in the city of New
York, insured his life for $4,000 in each of
three prominent companies of the country the
Equitable" and Guardian of New York
and company in the State of Maine. War
ner being some what advanced in years, was
required 10 pay sn extra premium, but aside
from this, experienced 10 dlffi Guilty in securing
ms policies, the physicians of each company
making thorough examination, and pronoun-
eng him a n subject to take risks upon. In
the spring OF the following year Warner died
suddenly of cholic. His heirs, or those for
whom these policies of Insurance were taken,
presented their claims TO the insurance com,
Panies for payment. The Equitable to its
credit, promptly paid its policy upon the pre-
so with the other companies, the sGuardian''
and the Maine company. These COM
panies utterly refused TO paw their risks,
the former upon the plea that Warner
deceived the physicians in his examination
AT the suggestion of the company. the matter
was submitted to a referee, Mr.. VIM. G. Wet.
more, prominent member of the bar of New
YORK, and by him thoroughly investigated
he decided that the company had fairly in.
sured the deceased, he having complied with
All the requirements Of said company, ard that
ms heirs were Justly entitled to the insurance
guaranteed by the company From this
decision the company appealed to the Superior
Court IN general term, Judges Morrell, Jones,
and Gorvin, and were there beaten again, the
court unanimously deciding that the com papy
were bound TO pay the insurance. Beaten
twice after full and impartial hearing of the
case the company still refused to submit and
have taken the case to the Court OF Appeals In
the meantime the parties insured m ust wait for
their money. What their circumstances are
know not. Did the company litigate this case
on the ground that Warner having deceived
them, the holder OF the policy had no just
claim upon theml They have offered to com.
I6%sassny p51mlss and hs pay aogel & the claimant
tins If they believed they had any
chance OF establishing their defence,
The facts OF this can all be verified by referring
10 tne New Iork Evening Post Of May 5th,
also containing editorial comments on the case
Here Is the trouble to be met with. Most per-
sons holding policies of life ins surance are not
an circumstances to sustain a costly course of
litigation with wealthy companies, and would
rather forfeit their claim than go to law to OBJ
tam II, with possible chance of losing more
n
orally known, and as the STAR is medium for
communicating facts TO the people, having re-
Gently published the Jersey City and New
hork NE insurance swindles, we offer this,
that all having due knowledge thereof may
govern themselves accordingly. INSURER.
The above communication is rather long for
the crowded columns of the STAR, but it Is
written IN seeming spirit of fairness and can
dor, and on a subject of interest to all classes of
the comm unity. For this reason, and because II
embodies the glst of the objections most COM
monty urged against the system of Life In
surance, We make room for il, believing, as we
do, that there is not a single point in 1t which
cannot be met and answered to the entire salts
faction Of any honest and dIspassIonate IN
quirer.
''Insurer," in the first place, wishes to know
what reason we have for saying that sit needs
no argument to convince prudent man OF the !
advantages of Insuring his life" The sentence
quoted was written advisedly. Taking for
granted that a prudent man is one who is |
anxious, like our correspondent, to provide in
some way for the wants Of his family when he
is taken from them; taking for granted, also,
that he would desire to invest his savings for
that purpose, in whatever manner would weld
the greatest and most certain return possible:
II remains only 10 prove that Life Insurance
fulnls these requirements; and we reiterate
that that needs no argument, as it can be
mathematically demonstrated and Is not a sub. |
Ject for logic, but matter of calculation. Lite
Assurance in Its ordinary character is a means
OF securing by present payment in full, or of |
An annual payment; sum to be realized after |
the death of the party. The principle on which
1t mainly rests is that, lille the duration of the
life OF one person is of all things the most un-
certain, IL Is possible TO ascertain with great
If a MI ffuffs OF
OF particular age will die within next year,
how many IN the second year, how many in |
the third, and so on. This rate OF mortality
ard the rate OF interest upon money are the
two principal data on which Life Insurance
practically depends. The latter does not ad-
NIT Of the same certainty as the former, but
most of the modern companies allow more than
enough margin TO cover any possible contin-
gency. We have not space nor time to
enter into the Calculations which show
how the tables of the rates of mortality are ad-
justed with almost as much exactness as the
multiplication table, or TO point cut the rela- |
tive advantages ard disadvantages OF propri- |
etary or mutual companies; but any OF our
rsaders who are anxious TO be enlightened on |
the subject will find the matter fully and i'm !
partially set forth in several of the most re-
liable works on political economy They will /
see that the principles on which the system is
based are sound. That the Investments are
profitable the tables Of any of the compan- |
les will show. Our correspondent does not !
dispute thaf fact, but harps on The risk, and /
both his queries might have been comprised in
ine question, Is it safe 70 invest in Life In.u
rance Companies Weanswer uueauiyocaIIy
ana decidedly, Yes, as safe as any other invest
meht much safer than most others No in
seslment Is perfectly safe. Merchandise is /
nuetnatng and perishable; coin NAV be lost or /
stoieni paper money or bonds NAV share the
same late. and are subject 10 the additional |
risks Of destruction by fire OF depreciation. /
may fail; banks may break: STOCKS /
80 down; and even real estate, conslderad ,ba
most stable Of possessions, may resi- unop
an uncertain title or depreciata In xaiua
NO earthly investment can be copsIdsr.5
IN ntirely secure, but life insurance is among the
safest. As We have already said, the prin
upon which the system Is founded are sound.
20 sound that If the companies Were all man
'gpd by capable and honest men, Investments |
herein would be secure beyond all question.
Dut the fraIlty OF human nature Is an element /
'i weakness. " hich enters into the calculation.
md brings In doubt where otherwise would be
ertainty, humanity speaking. Let "Insurer,"
loweyer 20 into the matter as Cautiously a. he 4
would INTO any other important business
arrangement; let him examine carefully as to