Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1870-10-20

we cannot have the latter, without ieopar-
dizing SECURITY, which must be the first
consideration in the calculations Of @ Life
Insurance company. 1t Is evident, therefore,
that the best method which could be devised
opay the Premiums on Policy Of Life in
suance, is one which, in its results ap-
proaches nearest to that above described.
Theoretically, the PART NOTE or LOAN PLAN,
with percentage Dividends annually, accom-
plishos thi, desirable result & thecorrcclne,s
Of the theory has uot only beea vouched for
by some Of The most eminent actuaries, but
also By the experience Of some Of the UldqSi
companies. N
REASONS FORINTRODUCIHG ALL-CASH TABLES.
There is II class Of insurers who, for Va.
whom the necessarily high Premiums Of the
Loan plan are Objectionable. This class en-
braces "a
1st Those persons who always pay Cashl
for everything, possessing a natural or ac
quired repugnance to everything which saw
ors Of being in debt.
I'd Those who are very liberal with money
when they have it in hand, regardless Of l,t-
ture necessities.
3D. Those who are receiving liberal in
come in the present, which is liable to ma
tcrial reduction in the future.
1t is to meet the wants of this class, and
carry out the original designs and profession
of the CONTINENTAL, of Hartford, viz To
give our policy holders the full advantages
to be derived from the experience OF Life
companies both in this country and in Eu-
rope, that we add to our Tables the Low
CASH RATES, with Dividends annually accor-
ding as each class has contributed to the di
visible surplus;
We do not present to the public.
LIFE INSURANCE AS AN INVESTMENT,
in the same light as other investments of
money. 1t is species Of investment, but
unlike other modes, the lapse Of time decreas
e5 the percentage Of profit or interest upon
the total Premiums paid. In other words,
the sooner the insured life fails, the greater
will be the per cent, Of profit upon the PICmi- |
ums paid, regarded as IN investment by the
Insured. Now as it is impossible for Life
insurance company to disburse more than
il receives, it follows that those who survive
their expectation Of life, or the term oftheir
end oWment, will not realize SO large per
cent ofprolit upon their investment OF Prem
iuius In tho aggregate, as they might have
done in some other way.
Our aim is to present Life Insurance to tho
people in its true light, not as an Investment
but rather as an indemnity for The
of a disaster which is sure to
oycrtakc every one The EVENT of DEATHS
but the TINE when. the event will
occur to each INDIVIDUAL is uncertain
though this uncertainty disappears when a
sufficiently large number OF lives are con-
sidered togetheri hence the necessity of Life
Insurance for the Individual, and the ability
of company to provide this Indemnify for
all. -
SOURCES OF PROFIT.
The sources of surplus in a Life insurance
are mainly as follows:
1st. From u larger allowance for expenses
than is found by actual experience to he nee
essary.
2d. From higher rate OF interest actual
ly received upon investments than was u.s.
sumed in calculating the net rates OF Prem
ium.
3d. From more favorable mortality ex-
pcrience than was calculated,
4th. From miscellaneous sources.
Thu contribution from the first source is
generally, alter the first year, nearly uniforms !
from the second source-us the reserve upon
the policy is constantly increasing the extra
interest earned is calculated upon II larger
amount from year to yeau-the contribution
to surplus is annually increasing; from the
third source the contribution. approaching
for though the mortality natur-
ally increases with the age OF the Policies yet
the amount at risk is an -ually decreasingOn
account of the increase of reserve held by the
cOmpunyv Formerly, the surplus from the
fourth source was matter Of considerable
importance on account of Che absolute for
feiture orPolicies from non-pay yment of Prem
ium; but at the present time, when nearly all
kinds of Policies are made nOn-lorieiture, 1t
would be unsafe to depend much upon it us
q source of profit
PREMIUMS CONSTANTLY DECREASING.
.-..-.,.,, -, .ao, t,,a4 +ho
FROM inc lorosoins ~ "i,i ~ % 9e'' ,'r,IMs .,, ~
aggrego'e 'nnu"i oo'' u i',.,S', " m oon
an increasing t senius' anu tho 'vY a',ont of tho
''D'',',y n,o bnlan.o. win ,o,n,
annual premiums ""e' 'i'0 O'''''''e' wa ~
decreasing ser'ys' ,',.. ,..n, 10 e.,,, ,.oor
""'t "',r ,r,o r,t,,ra or corrso # is impos,i.
~ ~ =. w snata,I -. y,iI cYn.y II hns become some.
D'S , ~ o,'a,on 'o'o ror rompanie. which have
adonted under various names, the "COntri- |
,nIion nI"b,, or returning surplis to publish
II,o IaI,or,ta tables shaving the progressive ma
lure of these Dividends, the tendency III
nearly all cases being to nnduly eAaser"te
the advantages to be gained belioNl,s 1t
unwise to present anything 10 oar poi'ey
holders that will raise expectations ""icn
might not be realized, we merely give SUI