Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-08-03
Life Insurance.

interest, will equal the amount OF the poi
CIV at maturity-this is called the re-
,erye." and 30 long as this remains intact,
10 long is every policy.holder perfectly BE-
cure. Now, all of the premium over and
above the sum laid aside for the reserve"
after deducting the expense OF the bust
ness, is the "surplus," and when properly
distributed among the policy-hoiders
of a company, is called "dlvi-
dend." Under the mode OF dis
tribution now adopted by nearly all COM
panies. called the contribution Ptdn,"
the "su,plus" remaining, and the profit
arising thsrefrom, earned By the excess oil
premium of each pOhey-hOlder is paid to
him, constituting just and equitable mode
of "giving every man his due" Now as
the rate of mortality, rate of interest on
Investments, as well as per centage OF e1'
penses vary from year to year, no respec'a-
BILE company can honestly promise any
specified definite amount, or per centage oil
dividend" and as the policy itself cons'i-
tutes and contains the only binding con-
tract between the company and the insured,
reckless, unprincipled and avariclous
agents and canvassers frequently avail
themselves of the general ignorance upon
the subject of dipidends and life insurance
generally to make promises, and IN some
cases guarantees of future dividends
which guarantees and promises are not
worth the breath that utters them nor the
paper upon which (sometimes) they are
written, while the company's office is 30
remote, and people generally are 80 very,
confdiug, that in this highly important
and serious transaction they not unfre-
guently accept these baseless assurances at
part of the contract and binding upon the
company, and when the delusion Is dis
PEELED, they sometimes unjustly condemn
the system Of life insurance, instead oil
blaming themselves for their own incon-
siderate, injudicious mode Of selecting a
TRUSTEE, for that is just what they are
doing when they insure their lives with
any company. Now, it would be well
for all persons contemplating life IN
surance, to keep these facts in Vlew'
aad TO inform themselves upon the sub
iect before selecting the persons who are
10 be the trustees for their wives and
children when they are no longer here
TO protect and defend their rights and
interests, and if a man properly appreciates
the importance Of the step, as he should,
he will be very slow TO accept az reliable,
these specious, unfair and oftentimes
groundless and false statements and prom
ises from men, who, if they be not strangers
are such oftentimes az he would not credit
in ordinary transactions, and he will also,
a. 4 prudent man, loving his family, select
as the trustees and guardians of their inter
ests, men and corporations of whom he
has some knowledge, and in whose integri-
ty, stability and fair dealing he can rePose
confidence. There is much food for re-
Election in these suggestions, and where
men TO observe, in this important matter,
the ordinary degree Of prudence which
marks their course in everyday transac,
tions Of minor importance, 1t would be
we'll for them, and they would not have oc-
casion Ed frequently 10 complain
of bad faith on the part Of the
agents 81 companies, and in some cases
Of the companies themselves. Much Of
this is the result Of that feature Of human
nature which causes men TO seek sfar OIL
for those things which are to be found at
horne. Men should seriously consider the
propriely of selecting unknown persons IN
distant localities as trustees for their
widows and orphans. Do you appoint
man in New England or the British Posses-
sions as guardian for your children or exc
cutor of your estate? Do the people OF New
England or of the North buy their hate,
shoes, drygoods, hardware and groceries
in Tennessee? Do they give employ
ment to our carpenters, bricklayers, mach
inista and other mechanics? By no means;
and vet how often do our merchants and
business men, who would justly complain
of their fellow citizens for buying their
wearing apparel and making their general
purchases in distant cities, give their
money to strangers, and sometimes I'M
friendly ones at that, to buy life lusur-
an ce, and thus conGding 10 unknown per-
sons the very highest and most solemn
iiducisry trusts, with as little seeming re-
Elections as if they were buying a horse
This practice is now and for some time has
constituted a serious drain upon the mon
eyed resources Of the State, and few per-
soma are aware Of the enormous amount OF
money ESTIMATED at about S2,OOO,OOO)
that annually finds its way North TO bene-
fit, in great part, foreign stockholders and
corporations. In order TO meet this very
want, and to stop this needless and injuri-
ous drain, good and prudent business men
have formed companies, now in successful
operation, conducted and managed by
men of well-known prudence and honor
able standing and character, in which
our people can procure insurance upon
their lives as cheaply, az securely and to
the policy holder az probably as they
can elsewhere. In Tennessee there are
several such companies fully able TO do
all the insurance of Tennesseans, and
whose character for fair dealing, strict re.
gard for contracts, and ability to make
good all they promise, is above suspicion
To show what one of our home companies,
at least, is doing, we refer TO the NASH
VILE LIFE INSURANCE COMPANY. This
company promised a dividend after three
90 annual payments, Its affairs have
been mansged with such degree of sue
cess. and lis accumulation has been such
a. TO Justify a dividend to all its partici-
pating policies issued prior TO September
!, 1867. This they will pay on the first
Of September proximO, and hereafter div
idends will be paid at the end of the
second year of each participating policy,
and annually thereafter, and the insuring
nublic possesses in the name and character
of its stockholders and officers, a sure
guarantee that honesty, security, economy
and prudent management will character
izs its operations and dealings, while its