The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1873-02-14
SOME FACTS IN LIFE INSURANCE.

In 1912 the first life company
was organized in America; in 1861
there were sixty thousand policies
in force, assuring one hundred and
seventy millions of dollars. The
ten years following IS61-years
characterized by plethora of pa
per money, the rise of rapid and
stupendous fortunes, lavish outlay,
and the prevalence of speculation
were remarkable for the steady
and large increase of the business.
By the end of 1871 there were in
force over eight hundred thousand
policies, guaranteeing more than
two thousand millions of dallars
In 1871 alone there were issued by
authorized companies of New York
nearly two hundred and ten thou
sand policies. In 1861 the total
income of the companies was less
than seven millions, and their total
assets under thirty millions;in 1871
the income must have been one hun
died and twenty-five millions, and
the assets considerably above
three hundred millions. Nothing
more striking than these figures
can be adduced tC show the favor
life insurance has met with, the
great power it has secured to it
self, and the trrst that has been
placed in it's management. But
there is another side to the pict-
ure, which is not so fiattering.
When apOlicy is issued, the con-
templated method of it's termina-
ton is the death of the holder or
the expiration of the term for
which he was assured. Under the
heads of "death'' and expiry,"
ought to be found, therefore, all or
nearly all the policies terminated
in any given year. How nearly
the facts correspond with the rea-
sonable expectation may be learn
ed from the annual reports of the
New Yosk Insurance Department.
These reports deal merely with the
companies authorized to do bust
ness in this State, but they cover,
nevertheless, very large proper
ton of the business of the coun-
try. From them it appears that
in 1864 the first year for which
returns were properly classified, }
Of the policies terminated (eXclud-
ing those changed" and "not
taken," but fifteen per cent. ceas-
ed through DEATH and "expiry,"
and that even this small percent
age had shrunk in 1871 to less
than seven and half. The de-
crease in the number terminated
in the natural and proper methods
has been accompanied by an in
crease of those ended in modes
which are a reproach to the bust
ness. The modes here referred to
are surrender" and "lapse." 1t
must be understood that in sur
render the policy is delivered up
to the company for a small con-
sideration, and is cancelled; and
that in lapse the company confis-
Gates to itself all, be it much or
little, which the unfortunate holder
has paid upon it. With this I'm
derstanding, the significance of
the following facts will be appar-
ent. The figures taken, as before,
from the New York reports, and
policies changed and "not ia
ken" are considered. In 1864
twelve per cent. of terminated pol
icies were surrendered, and seven
ty-three per cent. lapsed-and
lapse and surrender swallowed up
eighty-five per cent. of the whole;
in 1871 twenty one and third per
cent. were surrendered, seventy one
and a third pr ct. lapsed, and lapse
and surrender took the lions share
of nearly ninety-three per cent.
Verify, something is rotten in the
state of Denmark" In view ofthe
average experience of the last
eight years, it may be said that of
every ten policies which cease, but
one will do so by death and expiry.
while one Il half will be given up
for a slight compensation, and SEE
en- and a half will be absolutely
thrown away by the holders. The
number of policies which fail OF
their proper use would, perhaps,
surprise the general reader more
even than the statement of per.
centages. In 1871 the number oil
policies really terminated in com
panies of New York was I24, 275
of these 1903 were by death and
expiry; 1929 Iapsed and were
surrendered, of which SS,706 were
by lapse alone. When next the com
panies issue their circulars and ex
patiate upon the blessings bestow
ed by life insurance on the widow
and the orphan, let them devote .
paragraph or two to the loss, dis
appointment and vexation which
in some way or other, through it
are inflicted upon thousands whe
wish to avail themselves of its ben
efits and are excluded" Life As
snrance." in February Galaxy.
The old, like withered leaves
5 hold on to life by q frail tenure
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