The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1871-03-31


men, who have proved their financial skill
and good judgment by practical results, in
vest so largely in life insurance? Because
experience has taught them its value in
guarding against dangers to which all men
are liable-the danger of losing accumulated
wealth by some stroke Of misfortune, and the
danger of dying suddenly with affairs so
conditioned that no other hand can carry
them to aprofitable issue.
But if such men feel and acknowledge the
vast advantages Of life insurance, how much
more strongly do these benefits commend
themselves to those of moderate means, and
even still more to that large number whose
fortunes are in the future, whose loved ones
are dependent entirely upon the continuance
of the health and life Of the head Of the
family.
Can any insurable man be said to have
provided for his family, who has left them
to the risk of poverty in the event of his
death?
Life insurance is a Savings Bank which
secures to every man who avails himself of
its bcncfcent aid, that he shall leave an in
heritance proportional to his productive
power, whether he dies tomorrow or lives to
exercise that productive energy for a long
life time. No other institution does or can
do this. There is no other way in which a
young man starting out in life, can be sure
of leaving his family provided for at his
death. OF every hundred who attempt to
leave an inheritance from the successes of
business, not five succeed. No man has the
right TO expose a tenderly nurtured and
dearly loved family with no protection but
the small chances, practically much less
than f.; in hundred, that he will be one
of the successful ones.
Within very short time q well-known
gentleman has suddenly died, while in the
midst of full health and apparent success,
by an accident. The gentleman's success
depended upon carrying through certain
matters which he had in hand. His estate is
bankrupt. Thanks to his wise and loving
forethought his widow and children are pro-
vided for by the proceeds of his life policies.
Not long since Gen. B. of our army, calling
upon a friend to get his pay for the coming
month cashed, was invited by that friend to
insure his life He was in splendid health
and always needing all his money, he
thought he could not afford it. But, said
his friend, l will pay the first premium and
you may repay me when convenient. No, he
felt no fear. In three days from that time
it was too late, he was dead and his widow
destitute.
Every one admits the advantages, the
blessings conferred by life insurance, but
they complain that they cannot afford the
their consciences for what they already
know to be neglect of duty. But it is not
true OF any young man in health and with
the possession of his faculties, who is fit to
have any responsibilities at all, that he can
not insure for something. He may perhaps
not be able to insure tor large sum- but GER
tainly he can for small one. How few men
of twenty-five there are, who do not spend
for unnecessary luxuries, more than twenty
five cents day; yet that amount will in
sure man of that age for more than $4,000
in the NoRTBwEsrERN MUTUAL LIFE 1SsUR-
LNcE COMPANY, which is one of the best and
most desirable institutions to be found in
this or any other country. The success of
this company has been truly notable. It's
growth is healthy as well as gigantic. It's
policies are not large, but are held by those
who need such protection the most, and who
are also the safest and best risks to be asso-
ciated with. The " Northwestern" is a
purely mutual company in which all the
members are partners and all are equally in
terested in having healthy associates and in
having the risks well scattered. All these
things are important elements of strength.
One of the most vital points about life in
surance company is that of expenses. Large
expenses undermine a company, but with
small expenses, carefully selected risks, and
large interess on investments, the very best
results are obtained.
The conspicuous economy practiced by the
management of the 4" Northwestern" is best
shown by the Spectator Life Chart for
1871" which gives the ratio of actual ex-
penses for the year 1870 of sirty-nine life
companies of the United States. This ratio
is for all aoorking expenses of the companies
including death losses, and of the entire
list, but three have lower ratio than the
Northwestern" This table gives the ra-
tics thus: M
Mutual Life of New York ....... ........24.67
Economical Mutual ................ ........26. &c
Cnarter YAK ..........Z6.ss
Northwestern so
Being Western company they are able
safely to lend money on strong security al
ten per cent. interest, while they keep re-
serve calculated at four per cent. interest.
sum Of money invested for so years at ten pei
cent. compound interest will yield more
than six times the amount it would produce
at six per cent, and nearly five times as
much as at eight per cent. Another essen.
tial point is that an insurance company shall
be well managed and in this respect no bet
ter can be found, and the remarkable
growth of the society is doubtless largely
owing to the general confidence felt by the
people in the managers.
The total amount of losses paid since the
III lO05 10 Jdn 1911 %l ,OSZ :,
5000, of which SAT- ,OS5.1l were paid dur
ing the year 1870. Ml W. e.
It's total income for 1870 was So $40 ,37O.O OF
and its interest receipts were $3.50, 707.36
During the year it loaned on real estate Sc.
curity worth two TO five times the amour,
loaned, 81 400 100000, at ten per cent. inter.
est. Its assets are nine million dollars
Whatever surplus remains after the expen.
ses and losses of the year are paid, and a suf
fcient amount reserved to meet all futur,
liabilities, calculated with interest at -four
per cent, is returned TO the policy holders
This return of surplus, commonly called the
dividend, is distributed TO each member &C.
cording to the amount which he has fur.
nished toward making it. This is believed
to be strictly equitable, and is the plan
adopted by most of the oldest and best com
panies A note will be taken for a portion o.
the premium, or in other words
the company will loan portion OF
their assets TO their own members, such loar
being fully secured by the surrender valu,
of the policy. This is a very good invest
ment for the company and perfectly safe
and oftentimes il is an advantage TO the in
sured. 1t enables the insurer to obtain
larger amount than his cash payment would
A