Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-02-08
TOETINE-DIVIDEND LIFE AS
sURANCE POLICIES.
Combination of Inc Life Assur.
snce and TOntine Principles.
Life Insurance as an TnVest-
ment.

TOntine Dividend Life Assurance Pol
icies, Issued by the Equitable Life As
suran0e Society Of the United States, %
Broadway, New York.
JAMES A. SWAIN, General Agent,
Tor Tennessee, Arkansas and Northern Mis-
stssppl, No. y Monroe street, opposite Pea
body Hotel, Memphis, Tenn.
The following article, from the New
York EUeaiRg Post, will fully explain
the meaning and advantages OF TOntine
Dividends: "Tontine annuities, which
were first made attractive by Lorenzo
T0nti about the middle Of the seven
teenth century, have become exceedingly
popular throughout Europe and in some
parts OF South America. A Tontine is
quite the reverse OF life assurance, Ii be-
log, in fact, q combination of persons
who contribute to a common fun which
shall bs enjoyed by the survivors only
50 that aB years roll on and the numbers
surviving diminished, the income Is, OF
| course, constantly increasing TO those
Ia live, until the last members OF q
class enjoy most extraordinary Rdvan-
tsges from the system. In 1883 the last
survivor of the Tontine In France, a
widow, just before her death, enjoyed sn
iuo0me equivslenttO about $50 600 of our
money for her original subscription OF
about $50. So popular has this system
been In Europe, that many Governments
there have used it Tor the purpose OF
raising money for national support.
There are many persons so situated that
they care little for leaving money to
those who may come after them, WHO
they may coDsider-have little or no
claim upon them), and prefer to enjoy
while living q large annual income, |
which, combined with eRtire safety, |
their money could not produce In the
shape Of interest in any other way.
such are those who invest in Tontine.
Life insurance, as has already been OBJ
served is quite the reverse of the Tom
tine principle, and the arguments which
cause persons to invest in securities Of
this character appeal to a higher and
more uBselhsh motive than those
which influence investment In Ton
tines. The popular apprehension Ia the
minds of many persons who are asked to
insure their lives, but who have not
given life insurance much studY, Is that
ia case of a long life the investment
may prove a bad one; but a careful in
Vestigation will prove that this objection
is not well founded. We have before us
a policy in one of the leading mutual
companies issued more than twenty-five
years ago, taken out originally for 5000,
winch, when the policy became a
death claim, more than $40, 600 was paid,
the excess over the original amount OF
the policy being more than seven per cent
compound interest on all the payments
by the company. IL is proper
70 state that this result was due not only
TO the marvellous power of compound in
%terest, but also to the fortunate increase
In the value Of Investments, and the
return of surplus premiums. The
case cited is not an isolated one the
thing has been often repeated.
But at The same time, it can but be 40.
k~nOWledged that the gain from invest
Of this kind is greater in the case
Of early death, and the popular mind
seeks for some simple method by which
= certain profit can be secured,
whether the assured die early or
late. A system has recently been de-
for the combination OF all the
advantages Of life assurance with those
Of p0ptBe, and brought out under the
OF bR9 geii-known aotur ries,
4r. Sheppard Homans, author OF the
Contribution Plan o. Dividends and ao-
tuaTy OF the Mutual Life Insurance Com
1sny, and Mr.. George w. Phillips, ae-
-uary OF the Equitable Life Assurance
Society OF the United States. This sys- !
is known as the +" Tontine-Dividend :
system" under which, by q skilIruI ad- :
ustEe4t Of the DIVIDENDS, 3 reward Is !
,iven to those iifs aszurauts who !
nearly up to or beyond !
heir Expectation" OF life. II a per- !
on at the. age OF thirty-five insures his !
ife in a Company for as 600, and pays a :
premium Of 1868 80, and dies during the .
7earI while Theoretically as much profit !
= made on him by the company as on !
nose who are long lived, because the ;
Rbles are adjusted TO meet this e~xtgency, :
till in q practical sense, certainly very |
title money is made cut of the indi- :.
'idual transaction. Thus it would sp. !
)eGr TO the ordinary mind that Ii Is ex- !
,se1ingly equitable that the person who !
early, and whose family receives :
he face OF his policy, equal to a profit of 4
90, 300, or even 5000 per cent. on the !
money he has IL invested, should not re- !
a further sum In the shape Of diyi- !
ieDes, and that those who continue to :
Jey their premiums through a long !
ieTies Of years should have the benefit !
ii the accumulated dividends, In sddi- !
ion TO the fare Of their policies respecs !
giving them a profit somewhat !
sppFCximating to that Of those dying '
sary. The "Tootine-Dividend Sys- I
F" aims 10 accomplish this e9pitable !
distribution OF surplus. And it Is thought !
the Superintendent Of Insurance of !
ne State Of New York, hon, VIM. !
and many of our most pRomi. =
lent business ana financial men, that 1t p"
viii pOpulsTizs life assurance TO a degree :
Unknown. !
The plan as applied TO q particular 2
,ase is simply this! II a person at thu !
of 80 years insures his life for sos. Z
aud pays the premium Of $3.50 80, =
annual premium ia to be theOreti- :
ally compounded at the rate OF 10 per L
eDt. per annum, until suGh premiums A
interest IS specified amount to the >
ace Of the policy, which would be at the :
mentioned In l5.4-l0 years. During y
intervening peTiad tbs company is =
ning the policy is to make its annual =
lyldends on this and all other fontine =
"a on the rest Of their policies, !.
sserving the same and setting them y
part as g fund belonging TO the T0ntiDe !
lass, but not payable in any case until :,
be end Of the specified period Of Is 4 10 =
ears, and then only on such policies IS Z
ball then be actually Ia force, those (
terminating In the interval re- y
no dividends. The person hold y
ig The TOntine dividend policy above y
1e~ntioned, will at the end of the 1914 10 .
ears begin to benefit by the dividends :
lready declared and further disideDds !,
,ill be made annually thereafter !
throughout the remainder Of the term of y
ne policy. These dividends viii be pay y
BILE in cash, thus reducing or csnce!ling =
be annual premiums, ald in many =
asses yielding a cash annuity % we'll "
t has been calculated by the best actua- a
les that the dividend on such policies y
7ill be three or four times as great as on :
ny other kind OF policies. In some J
ases the dividends are expected not only 4
D wholly cancel the premiums, but to '
ield 8 constantly increasing cash an y
ulty as we'll. !
Persons dying during the non-divl- =
end period receive the face Of their !
respectively, and no more, y
Persons discontinuing their policies
urlng the non-dividend period, lose ell
hat they have paid,
This plan will admit Of a number Of Ii
ariations For instance o., the division
profits may begin st the end of an ar
itrary period of ten, fifteen or twenty y
ears; or t2h q separate elsss Of policies ,
ray be issued, upon the surrender Of y
'hich paid up policies will be given for u
value thereof, ia case the same are y
In uygn IN 1anaa hr 49, | IN