The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1874-05-27
LIFE INSURANCE.
Where SUms Of the Money Goes.

Editor A6bcriIe Press uaa1 Banner:
SIR: In conclusion, allow me to show
that large per cent. of the premiums
paid on policies is consumed in the Or
Iinary expenses of carrying on the bus
mess. The, little company of which
jeff Davis is or was President, am in
formed. paid him $4,000 annually for
his services, which amount must have
been at least 20 or 30 per cent. of the
gross income of O company doing so
small business. We will give all esti-
mate for company doinga much larger
business which is as follows:
-. Per cent.
Local Agents Commission, ,.........."..l5
General Agents expense and conn.,. 3
Necessary to pay President ,;I ;;i "s;c;.n
I" &" Clerical force, ,:...:,..". 2
Interest on Office and Furniturc,";:;.. 5
Advertising, printing, stationery, &C., {
Conducting lawsuits, incidentals, &c, 6
Making a total Of. f..:...:.......:.:.".;: 81
Leaving a balance of 40 per cent. from
which to pay policies that may mature
by the death of the insured, and to sus.
tain the ordinary losses in lending OF
investing money. Insurance compa'
nics, like other bankers, at times lose
heavily. The Citizens Savings Bank,
when they failed had in round
numbers some SS00,000 on deposit at
per cent. for. o portion of this money
while the remainder was put in theil
vaults without Interest. You may ask
how could bank borrowing SO low and
lending so high, ever break. L will
merely hint that some of 1t may have
been lent on improper securities. With
half the policy-holders' money consum-
cd in the outset, and the ANNUAL losses
to be met, / would like to know how
the poiicy-hoiders are to receive the q
or 25 per cent. interest on the invest
ment, or even to receive huff the prin'
ncipal back.
It should also be borne in mind that
insurance companies like other COM
panies, sometimes fail to meet their obli'
cations. "s.. ....- -.1-. -,..
An indirect loss that many of the in.
surcd suffer by insurance is in this way
The ready cash that would pay the or:
dinary expenses of crop is sometimes
taken to pay insurance policies, and the
planter is forced to give lien on his
crop 10 enable him to get what he wants
and then he pays so per cent. above the
cash price to get credit for six months
In this case the insured pays at the rate
of 100 per cent. per annum to replace
the money he has thrown away.
I have spoken of insurance because ot
honest convictions that it is nearly
equivalent to throwing money away to
thus investiit. Ispeak of no particular
company, butt of the whole business,
without exception. think that l have
said enough to convince the unpreju-
diced mind. Should our people with
the present lights before them, choose
to follow this phantom longer, / shall
feel that I have ut least discharged my
duty.
I would say to all, let your policies
lapse or forfeit, and 60 to work to earn
a competency which you may with
pride leave to the loved ones. Make
them to feel that you are worth more to
your friends while living than When
dead. Live that they may regret your
death rather than rejoice at it.
Attention is asked to the article on the
subject of life insurance, which may be
found on the first page of this paper.
PUBLIC POLICY.