New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-04-05
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SAVINGS DaNR IIFs INSURANCE. b. Haizra Wals"7 o'o'
80. 80 u.;4lt 4 Peer.
Jrpnlitc most life insurance litcratUTe this
v,,re IS intended DO OF service both to the com
.aies and the community. IN the practice or WHAT Is
known "a endowment rfe insurance, a conaluoh OF
thpc, has grown up which is satisfactory 10 AooOnF'
Tie insured find That after making due allowance ior 'he
ezus.s of life M rarce, tie remainder Of their annual
,,ou,- Il ,suraucc companies amounts with interest
a. more Il IN they will receive al the expiration Oh Aer
,,o,cios Hence there numerous ana urgent ~ p-
raf,,ps for Withdrawal The companies on the O,AcF
hand I'd thar they cannot afford 10 pay such sums upon
..ed policies might have been reasona y an
tclta.cd Mach hand lsclng between companies ana
pc,j.r.tIe.s eEsucs terminating, in considerable
amber Of cc.os IT, the total lapse OF pocc abandoned
In igr ana resulting generally 70 the discredt OF the
.,s,e,a O.. lie irs.tauceNr Wright analyz's encow-
mont u-lance dividing il into lis constituent parts,
showing exactly how much is life insurance ana now
C1cl endowment One OF the first ps IN tie analysis
Ii Inc statement that orliD"ry NE insurance IS
4, tact calculated as an endowment, payable at
death o. me a-e Of 100 years. 1t appears also hat
tst-- Is but to difference in cost between such an IL
ncc and ere that is PAYABLE 1t death or the acc CT
2, soc tic risks OF death beyond tat age are so ca0r
mons lit the policy may almost be regarded as having
o fertilizer chance Of accumulation IL is, therefore, TO
endowment policies payable at or before tie ace OF 20
ttbc-o analytical tables are devoted The most cF
sc esgce renders evident one OF the prominent causes
o.. fho dlf Uy that companies find in paying 10 the in
gel upon slrroudcrng policy OF this SORT rs large
raaIcr value as might have been expected II Is That
10 each instance the company has been paying 10 agents
apa;ceutacc OF commission every year not only On tho
no insurance. bur the endowment-on the part that
,loud have been acc umuGtng in savings banE,at
soauound interest for the benefit OF the individual de-
rotor The tables not dlsng ush these parts, but
show a every OF any policy precisely what part Of
IL insurance properi margin, normal cost companys
risk insurance value and surrender charges and what
part OF the endowment, OF Mr. Wright appropriately
names it. SELF insurance." constitutes deposits, reserve
and surrender values. These tables thus furnish
10 Companies and policy-hOlders alike, sys-
ten of bookkeeping by which to estimate their
respective positions. 1t follows that If pol
,cy be granted by company on the conditions i'm
tlod IN these tables there might properly be included
an agreement stating the willingness of the company TO
cancel the policy the expiration of any year. and pay
The surrender value thus predetermined or course,
such practice, should It become universal establishing
distnct understanding between insurance companies
ard their policy TO the amount for which each
oolcy could surrendered at any PERIOD would put an
end TO all question the point stop the now frequent
lapse Of policies without settlement and remove forever
from lie Insurance occasion Of obioQuy to which, as
DOW conducted. it is justly subject