The Portland daily press., 1872-04-05
MERCHANTS
Life Insurance Co.

have prepared, and now offer to
the public, a new method of insuur-
ance, which limits the amount of
the payments to a small and GER
tain sum, and provides a hand
some annuity for the relief and
support of old age, cOmbining, at
a low rate Of premium, the bene-
fits of the Savings Bank and
the high-priced Endowment and
Whole Life policies.
The plan is simple, easily UNDER
stood, and the advantages it offers
appear at once. Fifteen annual
payments are required on this
plan to purchase paid-up life
policy. Each yearly payment is
less than the preceding one, the de-
crease being at the rate of four per
cent. compound interest. AS an
example: 'at the age of rs the
first payment Oh policy for
$4,000 would be $373; the second,
1888 10; the third, S343 20; the
fourth, $32S 80; the fifth, $3I3 40,
the sixth, $29S 40; each subsequent
HSe~y AA1NAAs SAOOA SahSAHk9 tlAC SStHHHc
ratio until the fifteenth year, when
the last payment would be but
$I64 10, a sum much below the or
binary WhOIe-Iife rates. The total
Of the payments made amount to
$4,O2S 30, and at the end of the fit.
teenth year the insured would re-
ceive a paid-np policy for $4,000.
On the ordinary plan, to secure a
paid-uap policy for $4,000 by fiji.
teen annual payments, a person
25 years of age would pay to the
Company i'm the aggregate $4,S5I-
saving at once i'm favor of the
new method of 1922 10.
The new plan has, however, 9TH
er and greater advantages. At the
close of the sixteenth policy year,
and every year thereafter during
life, the Company will pay to the
pOIicy-hOlder such an annuity as
the entire surplus accumulated at
compound interest will warrant.
Conservative estimates in regard
to future rates of interest, mortal
ty, lapseS, and expenses, show that
this annuity will average about
five per cent. OH the aggregate
amount of the fifteen premiums
paid by the insured to the Com
pany.
Thus in the case above mentiOn-
ed, estimating the annuity at five
per cent. only, a person rs years OF
age, having i'm fifteen years paid to
the Company the sum of $4,O23 90,
would receive at the end of the six
teenth year, and at the end of every
year thereafter during life, a sum
i'm cash amounting to $2OI As. The
pOIicy-hOlder's right to this annu-
ity the Company will purchase at
any time after the full fifteen pay
ments have been made.
Should the insured through mis-
fortune be compelled to stop pay
ment before the fifteenth year, a
pald-up policy will be given, after
thfee annual payments have been
made, for as many fifteenths of the
sum insured as yearly payments
nave been made, an arrangement
Pefiectiy equitable and lust. On
such paid-up policies, however,
the annuity payment commences
at :he end Of the sixteenth wear
after the first payment made to fine
Company, and will be based upon
the amount paid for such policies,
The above is believed to be the most favorable
plan to the insured introduced-for in the event
of death within the fteenyear period, the percent
age of profit must be entirely satisfactory, while in
case of long life the annuity will soon repay every
dollar of premiums paid by the insured to the Com
pany, and prove in every way equal to an invest
ment in Savings Bank, for the protection and sup
port Of old age, while the amount of the policy paid
at death may relieve a destitute family, or add to
comforts already possessed
The Company is also prepared to issue policies
upon