New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-06-06
YdP,SED LIFE INSURANCE.

LAPSED LIFE INSURANCE.
Among tho indirect consequences of long
continued depression of the business interests
of the country, is an unusual number Oh IN
stances of neglect to renew life assurances.
Brief panics in the money market and tenn
porary stIngency only operate to checK ne"
business on the part of the companies, while
an era of general prosperity is usually markeu
by a great increase in the number OF policies
taken. Under the pinching influence OF
"bard times" many a luxury is dispensed
with. many a pleasure denied perhaps
even some actual necessity IL postponeu'
before the holder of a policy is forced 10
the unhappy conclusion that he is no longer
able to renew. In seasons like tho present,
behind every policy that an insurance COM
pany wines of its books, Cancelled before ma
turity. there is tale of hardship and of men
tai suffering that, if all could be gathered in
a volume, would make a more dOleful series
of lamentations than the woes OF the prophet.
The majority of these holders or lapsed
policies suffer in silence. Most OF them accept
the misfortune as simply inevitable. large
proportion of the sufferers regard themselves
| IA unfairly dealt with, but are unwilling TO
parade their mislaps before the world-h G.
| the eyes of their neighbOrs partly
because they have no hope of gaming
anything by the exposure, and partly
| from fear Of arousing The unsympathizlns
| chorus of 81 told Jon So" TO all others but
ito c--..,--.. lapsed policy is sure evidence OF
want of wisdom in taking insurance. and
nothing is so easy az to be wise after the
result. A few, however, grow angry over
their fancied wrongs, and are anxious to tell
their story. We print one of this class of let
tiers to-day. There is nothing remarkable
about it, except that at one time in the his
tory of this policy the company appear to
have acted with great leniency, stretching
their forbearance further than the limits of
the contract required; but when again asked
for somewhat similar concession, they stood
upon the letter of the law.
1t is undcniably true that the chief fault in
these cases lies with tho person who takes out
! the policy. If it were real estate instead OF
insurance that he was buying. he would care
| fully read and consider every word of the
deed that conveyed it would perhaps ask the
aid Of a lawyer to examine it; If he bound
| himself by a mortgage. he would study its
| conditions, expecting to fulfill his share OF
them and to suffer by its foreclosure in case
of noncompliance In that transaction. it
would not be the mere word of the seller of
| the property or of some intermediate, on which
the buyer would place his dependence but
| on the written agreement, binding both. How
| many people ever take life insurance with
similar precautions Who would ever think
| of writing to a newspaper to complain OF the
| hardships which resulted from failing to meet
| the obligations of a mortgage
The fact, however, remains as we have
stated, that q vast amount of misery accrues
with the lapse of policies, and we cannot re-
| gard with complacency system which brings
about such result. Every case of the sort
forms a nucleus of Encouragement where it
| Will be difficult, if not impossible, to plant
| confidence anew, and thus the business Of
insuring lives becomes more difficult year
by year. Perhaps it would have been
useless to urge the consideration of this mat
ter Oh our life insurance companies in the
heyday of their prosperity, when every agent
who was gifted with facile tongue could
bring in handful of applications for policies
after weeks canvassing. But now, when it
is at best uphill work to propagate the Cos
mel of life insurance, it would seem to be a
measure of wisdom for some of the leading
companies to make new bid for public favor.
There is no surer method of obtaining an i'm
mediate increase of business, with the GER
tanty of permanent satisfaction to all parties
concerned, than in the issue of policies
which are definite in all their provisions;
which state simply and squarely on their face
the amount of money which the company will
return to cancel the policy at the end of each
year. 1t is true that such statement would
greatly surprise many persons who now
imagine that companies can afford to return
large proportion of what they receive, and
forget that the risk of life is something that
must be paid for, like the risk Of fire. But
if people understood life insurance better they
would take it more willingly. As policies are
now issued, the morality Of the system is
open to doubt; there is room for question
of the honesty of bargain in which one of
the parties is almost invariably deceived.