The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-10-06

innovation, the main benefits Of which will
accrue to the insured; but the New York
company can amply afford to grant the con-
cesgion and It is one in line with correct
principles which must eventually prevail.
One Of the weakest points in the system of
life assurance has always been its depend
ence on soliciting agents, who draw high
commissions. There is great army Of
these men travelling about the country
and DINING into the ears OF all who
can be cajolcd or bored into listening, the
merits Of the different companies they rep
resent and the manifold advantages to be
obtained from the taking Of risks in them
Policies with new-fangled titles are issued,
and great part OF the insured take them
out under a mlsapprehcnslon OF the exact
security they arc getting, sometimes even
imagining that life insurance company
Is mine OF profit for tho policy
holder. This idca is encouraged 10y the fact
that the companies declare what they call
dividends, but which are nothing more
than the return TO the insured OF the excess
of premium they charged him. II there
were no so-called dividends. he would have
less to pay yearly for keeping up his policy
and that is about all there Is of the matter
He pays more than Is necessary, even after
the agent who induced him to assure has
been rewarded and his proportion of the ex-
penses OF the company has been ciphercd out,
and the surplus comes back to him in money
or in the reduction OF his next premium
payment.
The great advantage OF life assurance to
men on salaries to men doing a hazard
Gus business, and to many whose only capt.
tai Is their honesty and probability OF life,
cannot be questioned. 1t is one of the most
valuable obtainable in our modern civlliza-
ton. and the maintenance OF n policy, like
the scrupulous keeping up of a savings
bank account, is a generator Of the virtues Of
thrift, self-denial, and dutiful forecast. But
the trouble is that this advantage is often
lost. The insured are deceived by the
agents OF the companies, who so treat their
patrons that they feel that they are swim
died, though their own Ignorance may have
led astray their hopes, and the consequence
Is that the vast majority Of the policies
lapse. as the insurance term is, that is they
terminate otherwise than by death The in
sured pay one or two premiums, grow dis
| contcnted, and allow their policies to fall
| through for lack of obedience to their re-
quirements, thinking it better to lose little
| money than to run the risk OF throwing
| away more. Others are surrendered To the
companies. after fow years, for a fraction
of what has been paid on them. A very
small proportion OF life policies, as the sta
tistics OF the business prove beyond dispute,
are terminated by the deaths OF the holders.
The soliciting agents, who swarm about
all the companies get commission ON the
first premium paid ranging from twenty to
thirty per cent, and on subsequent prem-
ums a less percentage. This is a bad
way Of doing business, and IL const-
tutes a sound objection To the life
assurance system as at present managed.
When the day arrives on which the strong
corporations shall venture to rely upon the
ordinary means Of advertising their ad-
vantages and shall give TO the assured his
policy unloaded with agency expenses. the
life insurance business will be far stronger
than it is now. The rates are too high be-
cause the expense of getting new business
and keeping the old is too great.
We presume the action Of the Mutual Com
pany is first step toward the abolition
OF the whole expensive and damaging agency
/ system.