The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-02-22

here is no occasion TO increase the
provision for expenses on account oi
this part OF the contract, nor for any
appreheuded excess OF mortality, for
there is no risk incurred by it on the
part Of the company.
1t is only in regard to the insurance
parts OF these contracts that the respec.
tive net premiums 800 and $44+ A
and $57l 43 need to be increased at
all. Aud why should they not be in
creased in proportion 10 the insurance
to be done by the company under such
contracts. that is the insurance value Of
each2 This is the practical question
now before every life-insurance COM
pany in this country, and it is several
times more important than any other,
for other things depend on it. By the
antiquated blunder OF which | have
spoken, not the slightest regard was
paid to the insurance value OF the con-
tract in deciding the question OF addi-
ton 'or expenses; or loading as it is
called. Indeed the thing was wholly
ignored and either fixed percentage OF
the net premium was added to itself or
one arbitrarily graded, but always pro
ducing, most absurdlv, the largest
margin on the largest premium relative
10 a given am ount of policy.
Under the hypothesi. above, the 10
surtnce value OF the first or whole life
policy is found thus. The value OF the
FIRST risk o. $500 is 800 in hand. There
are three chances out of four Of having
the second rick o. $500 to carry Tor
500. which is worth $3.50, and there
are two chances out OF four OF having
the third risk OF 500 to carry for 5000,
which is worth 800 So that the n
surapce vslne o. the f ct, or whole lite
policy. is S450, Of the three year eudow-
ment, 1896 30, Of the two year endov-
ment $l42,S6.
These insurance values at the start
measure tue interest OF the respective
policies in the company as su insurance
company, and the additions for lnsu-
rance exoenses and mortality contingen-
cy should plainly be in proportion TO
them. Suppose We need su addition or
loading TO the whole lite premium OF
800 This is 90 per cent, Of the insur-
suce value. and equity demands simply
that the samepercentsge OF the
inseuranc values OF the other poll
cies should be added to their net pre-
miums. making them respectively $49O,
s5O3,7O, and 5000 But the old blum
der starting with the same premium on
the whole lite policy, and loading by q
percentage OF 22i per cent o. itself o
mske it, would make the premiums
1890. $544,44 and 800 thus giving the
shortest endowment policy which has
the least insurance by the company,
besides its larger expense on its larger
deposit, the butt end by 800 OF the In
sursnce expenses Look at It thus,
and ponder on it.
The Equitable Thing. The.Ancisnt Blunder.
Gross Prem. MIR. o,s Prem ar.
Lls geo 49, so. aS9 sS
) ; ear En- En-. TOO " ISL 7Oo is,1
Here is the fountain Of tue present
trouble with lite insurance. 1t is not
the excess'veness oi the premiums. but
the violation equality in oadi.g them.
And even this would do no practical
mischief however theoretically y absurd, il
the companies did not proceed to assess
insurance expenses, beinuing With
agents commissions, in me same Wdy,
and then sggravste the iniquity. when
ever an already overtaIed member
seeks to withdraw, 10y basing the sur
render charge as absurdly on the self
insurance instead OF the insurance VAL
ue. This it is that hae brought matter.
to such pass that an old actuary hard
ly dares to turn street corner sudden.
", lest he should meet an irs,e short
endowment victim. who will break more
than one tenth Of the decalogue over
his head. The blunder once found out
rs almost as ridiculous at it would be to
harness our horses tail foremost, and
would 60 out OF use ss speedily, but for
the sanction that has been given to it
by long usuage, and the cheek OF that
checklist OF all apostles. the life insult
snce agent
The executive officers OF all the COM
psnles, 20 far az | know, are quite aware
OF this, but in public, with the excep.
tons OF the attack on my Saving Bank
Insurance system above quoted, to
which am now about 10 reply, they
have kept as still as mice about it
When | speak to them, some say, o
we don't mean to, or we have intruc.ed
onr agents not to take any more short
endowments. Others say. o We don't
any longer pay a. high q percentage on
end d0wment premiums "a on whole lite.
Sull, such policies continue 70 be taken
and are ssvsgely over taxed when they
sre taxed least.
III have succeeded in establishing 10
the readers mind the dist notion be-
tween the self ipsursnce and the insur-
snce done BY the company, which takes
place in widely and ever varying pro.
portions. uuder every policy, he is now
repaired to appreciate the actual hg-
ures OF the case, TO be sstounded at Mr..
Winstou's attempted coup d>tat, and
II, more at the llbelous uttersuce OF
the Charter Oak against the proposed
system ot.Ssv!ngs Bank Lite Insurance.
| give below the present premiums Of
the Mutual Life for policy OF $1,000,
payable at a given age or on previous
death, and the prc posed ptemiums with
tueir respective margins over, or sddi-
tons to, the net premiums by the Amer
ican Morality st four per cent, and the
Savings Bank premiums, proposed by.
me for the same policies, With their
marg ns over the actusries, At four per
cent which are OF cour,e little less
than they would be compared With the
American Mortality.
Pol.cy forS 600 at the age ofto. Paysbh at
Given A e or Previous Death.
SAVINGS BANK. Mutual LIVE