The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-02-25

either fixed percentage oil the net pr
MUM was added to itself or one arbitrar
lly'graded, but always producing, mo:
RbSurdly, the largest margin on u
largest premium relative to give
amount Of policy.
Under the hypothesis above, the insur
ance value Of the first or whole life polio
is found thus. The value of the first ris
of $500 Is 5000 in hand. There are tire
chances outof four Of having the secon
risk oil 5000 10 carry for $500, which
worth $50, and there are two chance
out Of four OF having the third risk Of $40
to carry for 5000, which IS worth 500
So that the insurance value Of the first, 0
whole life policy IA $3.50, Of ethrec yea
endowment, 1895 80, oil the two year en-
dowment, $149 SO.
These insurance values at the star
measure the interest Of the respective poll
cies In the company as an insurance com
pany, and the additions for insurance OK
penSes and mortality contingency shoult
plainly be in proportion to them. Sup
pose we need an addition or loading to tn
whole lie premium Of 800. This is q
per cent OF the insurance value, and equl
ty demands simply that the same per cent
age Of the insurance values Of the Othe
policies should be added to their net pre-,
miums, making them respectively $500
$603 20, and 5000. But the old blundel
starting with the same premium on tn
whole life policy, and loading by u pc
centsge of 22i per cent Of itself to maxi
it, would make the premiums $500
$544 "A and 800, thus giving the shortes
endowment policy which has the least in
surance by the company, besides its large
expense on its larger deposit, the butt cn(
by 800 of tho insurance expenses. Loci
at II thus, and ponder on it.
TUE KQTrABLE THING. THG ANCIENT BLUNDER
Gross Prem. Margin. Gross Prem. Margin
LIE Ms.r rD Ss sos ?, sgS sf @ S SSS
ss yySaF e. &C. &C. ssS7 20 20 is
Here Is the fountain OF the present
trouble with life insurance. 1t is not the
excessiveness OF the premiums, but the
violation OF equity in loading them. And
even this would do no practical mischief,
however theoretically absurd, II the com
panies did not proceed to assess insurance
beginning with agents com
in the same toGy, and then aggra'
Vate the iniquity, whenever an already
overtaxed member seeks to withdraw, by
basing the surrender charge as absurdly
on the self.insurance instead Of the iu-
suranCe value. This It Is that has
brought matters to such pass that an
old sc!uary hardly dares to turn u street
corner suddenly, lest he should meet an
rate short endowment victim, VINO will
break more than one.tenth OF the deCa-
logue over his head. The blunder once
found out is almost US ridiculous rs it
would be to harness our horses tail FORE
most, and would go out Of use US speedily,
but for the sanction that mas been given to
1t by long usage, and the cheek of the
checklist Of all apostles, the llteinsurance
agent.
The executive officers of all the COM
panies, so far as l know, are quite aware
Of this, but in public, with the exceptions
Of the attack on my Savings Bank In
surauCe System above quoted, 10 which l
am now about TO reply, they have kept as
still as mice about It. When l speak to
them, some say, D we, don't mean to-, or
we have instructed our agents not to take
any more short.term endowmGnts. 9th.
ers say, o we don't any longer pay as
high percentage on endowment pre-
miums as on whole life. Still, such poll.
cies continue 10 be taken and are savage.
ly over taxed when they are taxed least.
i'll have succeeded in establishing in
the readers mind the distinction between
the seltinsurance and the insurance done
by the company, which takes place in
widely and ever varying proportions, IN.
der every policy, he is now prepared to
appreciate the actual figures of tho case,
10 be astounded at Mr.. Winston's attemp
ted coup Getat, and still more at the libel
ous utterauce Of the Charter Oak against
the proposed system Of Savings Bank
Lite Insurance. l give below the present
premiums OF the Mutual Life for policy
OF 81, 900, payable at given age or on
previous death, and the proposed prem
iums with their respective margins over,
or additions to, the net premiums by the
American Mortality at four per cent,
and the Savings Bank premiums, proposed
by me for the same policies, with their
over the actuaries, at four per
cent, which are OF course little less than
they would be compared with the Ameri-
can Mortality.
PoLloY FOR $1,000, AT THE ACE OF 30, PAYABLE
Alta GWEN ACE OR PRLYIoUs DEATH.
Savings Bank. Mutual Life,