Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1869-12-17

s'The plan of insurance OF the Equit-
abIe Society,"" remarks DR.. Ir@neus Prime,
sis probably as nearly perfect as anything
human can be-" The premiums are inva-
riably payable in cash. 1t issues ordinary
fe-policies, life-policies which are to be
paid up in five, ten, fifteen, or twenty
annual premiums; Tontine-dividend poll
cies; ordinary endowment policies payable
at death or at the expiration of a specified
number of years, and endowments in like
manner which may be paid up in one,
five, or ten payments; joint-ife policies;
term policies children's endowments; an
nuities with or without profits, survivor
ship annuities. Ali five and ten payment
policies, whether life or endowment, are
non-forfeitable, after two annual premi-
ums have been paid, for as many ffths or
tenths respectively as there shall have
been full yearly payments made, and ordi-
nary life and joint-life policies are non
forfeitable for an equitable amount after
three full annual payments have been
made. Life and endowment policies, the
stipulated period longer than ten yeals,
are forfeitable after three annual premi.
ums have been paid. These policies may
all be drawn in favor Of the assured to be
signment; Or they may DO drawn in favor
of wife; wife and children; intended wife;
any near relative; a creditor; mortgage;
partner in business firm, of which the
assured is o member, and others. All
profits Of insurance, the surplus funds of
the Society--are annually divided among
the policy holders only. in the form of
dividends and III exact proportion to in
dividual contribution to those funds
These dividends may be applied, at the
choice Of the policy-holder in any one of
the five different ways, viz: to an addition
to the amount assured, payable only in
case Of death within specified number of
years; to q reduction in the amount of all
subsequent premiums; to larger reduc-
ton in the amount Of premium for one
year OF more; to a limitation CT the num-
Der Of premiums required, so that premi-
uns may cease at a comparatively early
age:-and the selection of one way in any
one year does not restrict the right of
choice in any subsequent year.
The Tontine-dividend system, method
Of insurance not hitherto practiced by any
other company, illustrates the peculiari-
ties Of life assurance as q profitable form
OF investment. The system originated
with the Actuary Of the Equitable, and has
recs IL Cd the highest commentator from
the superintendent of the Insurance De-
partment and from large number of cap
iSalists and prominent business men the
former has expressed the opinion "that it
will popularize life assurance to q degree
hitherto unknown" It is evident that in
case of the early death Of policy holder,
although the tables are adjusted to meet
such an exigency, the Company, or in
other words the SURVIVING ASSURED realize
no money from the transaction. The re-
preventative of the deceased policy holder,
on the other hand, have received in the
face of the policy alone, it may be, profit
OF 500 or oven 5000 per cent. it seems
equitable. therefore, that having paid but
few premiums he should receive no further
sum in the way of dividends, but that
these accumuiatione should bo eventually
given to those who pay premiums long
series of years, enabling them to realize
on their outlay profit npproximating to
that Of those dying early. This is done
in the Tontine system. The premiums of
all persons insuring on this plan are the
oretically compounded at ten per cent
per annum until they shall amount to the
face Of tho policies respectively, a period
varying according to the ages of the as
sured for one insuring of 80 it is frac-
tion over - years. During this period the
annual dividends on ali tontine policies
are set apart as fund belonging to this
class. All who die before the expiration
OF the period receive only the face of their
policies, the accommodations going solely to
the survivors OF this period in the shape of
reduction of premiums thereafter and
eventually III cash annuities. The best
actuories have calculated that the divi-
dends on such policies will be three or four
times greater than have hitherto been de-
clared by any company, and the system
presents peculiar advantages to those who
are of longlived families, to those who
have mortgaged estates, and to all recipi-
ents of large incomes who are unale to
accumulate to the point of independence.
Much OF the unprecedented success of
the Equitable is owing to the genins and
energy Of its officers and to the disinteres-
ted liberality Of it's directors, who have
been from the first self-constituted gratu-
itOus agents, in extending the benefits eof
the system among the families of their &C
quaintances, and in advancing the Society
as purely benevolent institution. There
are other elements not perhaps entirely
distinct from those we have mentioned
without which successful career could
not be maintained. Great volume of bus
mess is not conclusive evidence sof great
prosperity. There must be the utmost