The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1880-06-03
THE BUILE1IN THURSDAY MORNING. JUNE 4 1880
THE DAILY BULLETIN.
THE REAL AND COUNTERFEIT.


THE ASSESSMENT" LIFE INSURANCE DE
LCsION.
The New York Times, in its regular de-
partment of Answers to Correspondents,
replies to seeker for information as fol.
lows
J. STEpHENs.-Are cooperative life in
surance societies safe, and is the system one
which will guarantee my family obtaining
benefits in case of dcathl Does the plan
compare favorably with regular life insur-
ancc.
Answer.-We will make the answer to
this correspondent cover the inquiries of
several other subscribers.
If you contemplate dying early, a coop
erative society may suit you, and for this
reason:
If 1000 people Cooperate and agree
to pay 81 when any one member dies, the
one who dies first would have 900 to come.
IL you contemplate OUTLYING the 900
other members land somebody must do sol,
cooperation is not the system for you. be.
cause. in that case, having contributed your
dollars for the 500, it would only remain
for you to put your own dollar and die.
Of course the 800, being dead, could not
put up their dollars.
The assumption is, that, when one mem
Der dies, another will step in and take his
place.
This is an assumption. If it be the case
III new lives come in, and if all the men,
bers pay up--then you may get uncertain
but certainly expensive insurance.
The difference between cooperative and
regular life insurance is at once seen.
Life insurance, as carried on by the reg
ular companies, is a science, and is con-
Quoted on perfect and unassailable sys.
TEN. BY this system Of reserve" funds, if
there be l,O0O people insured for 81 900
each, when the last man dies there is re-
serve Of $1,000 to meet lis policy claim.
There have been many speculative life
insurance companies that have failed
about twentythree- since life insurance
has been known in this country.
Within twenty years, over five hundred
cooperative life companies have failed.
They were, for the most part, conduct hon.
estly, thrived for a few years, and COL
lapsed. Any mathematician can, in few
minutes, show that that this END must come
TO every cooperative company.
Those who died quickly in these societies
made hit; those who held on were out of
pocket and minus insurance.
One advantage Of cooperation is, per-
haps, that, when one Of these societies ey-
pires, there is no trouble about dispensing
the funds
They don't have any funds.
1t has been said, as an objection 10 regu-
lar life insurance, that one has to die in
order to win"
In cooperation, one has not only 10 die
to win," but he must die mighty quickly,
or the society will get ahead of him.
In regard to the cost; Cooperation is
cheaper at the start than regular life insur-
ance, but, as the members increase in age,
deaths, of course, multiply rapidly, and,
as man grows oder, the more he is called
upon to pay to keepup his insurance.
In this respect, the difference between
life insurance and cooperation is this:
In life insurance company the pre-
miums decrease each year; and, if you live
to be very old. and do not draw your divi-
dends you bave absolutely nothing to pay
for your insurance.
In cooperative society, your payments
increase each year; and, if you live to be
very old, the immense number OF deaths
will make insurance cost certainly half,
and perhaps two-thirds, more than in life
company.
The importance of dying early. If you
desire to get the benefits, is therefore clear
ly apparent
Treasurers of these societies have been
known TO collect one round st 81, and then
disappear
The Peoples Widows society, of Chics
90, came to an end in this way few weeks
since.
The officers of these societies are not re-
sponsb!e TO any one, ana are not under
state control.
We think you would find a first-class
life insurance policy much cheaper and
cminently more satisfactory. You know,
in the latter, just what you must pay in
cooperative society, you can hever know
what the cost will be from week 10 week
But still, if you are sickly, and nobody
else will have you, 90 into cooperative.
u