The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1868-11-14
Life Insurance on % New Plan.
RICHMOND, November II, 1868,


RICHMOND, November Il, 1868.
Editors Of The Dispatch:
In your issue Of the 10th appeared an
article upon the subject Of life insurance
upon new plan in which | think inius.
.ice is done to an enterprise, although new
in this section, yet still is deserving Of
merit and success.
There are existing Mt this time several com.
panies in the northern as we'll as the south
ern States based upon the new plan, and
which have thus far succeeded to the ex-
pectstion Of the most sanguine Of its mem
bers.
New enterprises, like new inventions
haveto contend against prejudice, capital
and competition; and when these obstacles
are overcome, the way is clear to success tc
all schemes of merit.
This scheme, yet in its infancy, is an en-.
tirely new enterprise in this section, ana
hence the opposition. At first it would seem
natural that the old plan should feel some
what Jealous of their interest. This IS
great mistake, for life insurance as YET Is
in it's infancy. This neto plan but gives
the noorer as we'll as the richer class an
onnortunitv to taste the merits of life 1nsu-
rance and If it proves what it breaches
las many will admit, when the times and
country are more prosperous, and the in
sured in the new plan feels stronger fnan-
cially, he will extend his operations to q
wider field, and try the old as well as
the new. Thus it is to the interest of the old
plan to foster and build up the new, that
they themselves may grow IN greater
strength.
The new plan, if understood properly,
is founded upon system OF mutual
protection to each other IN case OF
death. The ages are scaled for that pur-
nose, so that they shall bear each others
burdens. For instance, they are Chased after
the following: Those between fifteen and
forty-fve must number 1866: fortv-fve and
fifty, 1874; fifty and fifty-fve, 440; fifty
five and sixty, 16O-making 5000; and
these different classes in number must bear
their relative proportion TO each other
throughout the list of membership. The
whole number may be insured at less ages
than forty-five, but they cannot exceed in
age the relative proportions above named.
Thus, loading the com pany with old age is
entirely cut off from being beyond the en-
aurance of its means, and places the new
plan upon n footing more economical, OF
easier access, and less payment than the
old plan.
In this feature rests the merits of the
new plan. A man Of moderate means can
paw $3.50 per annum in installments Of
sl.25 each, rs occasion calls for, much
easier than he can pay the whole S31 80 at
one time.
The presumption that the average age of
persons in any company would he thirty
FIVE, and that the expectation of life Al that
age would be thirty-fve years more, or that
they would all live to the average Of seventy
years, is substantially correct, and "A Sub
scriher's" statement as to the number OF
deaths among FIVE thousand members would
hold good provided al remained in the
company and no new members we're adj
mitted until the company becomes extinct.
But no company has, nor neUer cd1, exist so.
To every one member who dies, seven others
lapse or cancel their policies, and new mem
bers fill their places. This rule holds good
in all established companies. No company
becomes extinct in its working history
has proved that and therein lies the safety
to the policyholdcr.
If one were to become extinct, MI must;
for the same rule will apply TO one as well
as another company, whether it has 5000,
30, 600. Or 100 COO members. The eyrec;a
ton of life will be the same in the larger
as well as the smaller class, and the larger
class will become extinct within the same
time of the smaller one.
But you say, upon the old plan they keep
adding to the members. IF one dies, an
other fills his place, and thus it becomes
perpetual, and the list is always filled and
growing in numbers. Perpetual, did You
say? Therein lies the gist of the whole
scheme. 1t will apply to the neo7 plan as
well as the old.
Again: Under the ne,0 plan there is no
restriction that the company shall not take
10000, $4,000, or even $4,000 members, if
they SO desire, but restricts simply the
payment of an excess of IS 900 at death Of
a policy-holder.
The new plan is in every respect similar
to the old one, except upon more economi-
cal scale. And now few words ae 70 the
erroneous impressions exciting with many
as to the rate of mortality. In accordance
with the English and Carlisle tables (Which
have never been refuted), of those between
fifteen and sixty years Of age, but nine IN
every one thousand die annually. This rate
includes all conditions of health--the good,
bad, and Indifferent. From this class pru-
dence dictates that they will select their
risks, and take none but sound and healthy
persons thus reducing the risk from nine
to six to every one thousand yearly. Thus,
in 5000 there would be thirty deaths, and
the member in the new company would pay
S37 so annual tax, while in the old plan
each member would pay 1884, at the same
ages of thirty-fVe years on the same
amount.
Where can you obtain cheaper rates =? In
the new plan the same tax only will exist
to the member, whether there be 5000 OF
$4,000 members.
The new plan does no harm to the old
plan; on the contrary, it will benefit it by
diffusing the principles Of life insurance
among class never yet reached by the old
plan. With the new plan the field of ope-
ration lies among all classes--the poor as
well as the rich. All will have an oppor-
tunity alike to reap the benefit of protec-
tion to their families, and by this easy
| method be enabled to leave q competency,
in case Of death, to his ,0ido,o and children
at a small cost, and the small cost by easy
payments. The new plan is yet in its in
fancy, and is entitled to position in the
ranks of new enterprises and fair trial
1t is true, these new plans may have origi
mated in the North but that is no good
reason why similar companies cannot be
established South, and by that means keep
the money ut home instead of sending il
where it is not only not seen again, but
where we will never reap any material