Savannah morning news. [volume] (Savannah) 1868-1887, 1881-08-29
GRAVEYARD LIFE INSURANCE.
How Aged Men and Women are
DuPed by the Agents.

A case heard before Alderman Graul,
OF Reading. Pa, on Saturday last. re-
suited in an exposure of the methods of
those engaged in the business of grave
yard life insurance. An old man, bent
with infirmities and a misspent life,
brought suit against an agent to recover
$25. The money, he said, had been
promised him for the privilege of insur-
ing his life, but the agent refused to pay
the amount. The prosecutor is pro
fessional'' in the business of having
risks taken on his life, he playing the
part of dying man, when in reality his
health is as good as the average mans
at his time of life These professionals
charge So per 81 900 but it seems that
they are duped by many agents in the
following manner:
A professional consents to be insured
for 81, 900, and is paid $5 cash. Gen
orally speaking, he never reads what he
signs, nor does he care much what it is.
He thinks the papers are for an applica-
ton for single policy for 81 900. The
agent who has him in hand gets his sig
nature half dozen times on as many
different papers. He is told that it is
necessary, as the company is very strict
one The truth is, the old man has
signed for three or four policies for
81 900, $4,000, $4,000 and $1,000, for
which, however, he receives a single fee
of So only. He imagines that he has been
insured for $4,000, whereas the amount
on his life is $14, 4,O00 This is the
way in which such large sums of insur-
ance are placed on the lives of the old
paralytic, poor and palsied, are hood
winked in the same way. The agents
then peddle the policies around the
country to whoever will buy. This
''watered stock, as it is called, forms a
leading article for barter in many back
country marts. 1t is a common express
sion that you can't throw stone in
Eastern Pennsylvania without hitting a
graveyard life insurance agent with
policies to sell. He has paid S. to the
subject and owns $11, 900 worth of poll
cies. They are in Al companies that
pay full face value of the policy. The
agent thus carries on his sale:
'Now, sir, privately, you know, be-
tween you and me, this policy for So, 900
cost me $40 before got it issued by the
company. Uie No. y. The subject is a
good one, first class; won't live six
months. Oie No. p. Now the policy
Just as it stands cost me $25. (Lie No
b. / will let you have it for $50, aud |
wouldn't be a bit surprised but what
you'd hear of the old paralyzed skeleton
being dead in less than six mOnths" Iie
No. A..
The policy is sold and duly assigned,
for which the company receives 81, the
agent makes $50, and the holder of the
policy hunts up his subject to inspect
him and speculate upon the probabilities
of his early demise. 1t is safe to say
that there is more money made in the
sale of policies than in any other branch
of the netarious traffic.
An aged woman consents to have her
life insured five times by as many differ
ent parties for 81, 1000 each. She then
supposes there is $1,000 insurance on
her life, whereas she has been tricked
and duped, and in reality there is $55,
600 on her, which, if she knew all the
facts, would startle her out Of her wits.
These aged people never do know how
much insurance is on their lives. An old
woman down the country boasted the
other day that she was insured for $50,
600. The fact is (but she does not
know iD, she is insured for 1920, 600,
and the policies are held by her neigh
bors, who are anxiously watching and
praying for her death. She is lively as
a cricket, and laughs at the idea of her
dying for the next ten years To her
intimate friends she says: "Oh, they'll
all get tired of this business before I'm
half ready to die"
Policies in these crooked companies
vary in value just as speculative stocks
are affected by the changes in the bulle-
tins from the Executive Mansion. A
dozen men holding policiesaon old peo-
pie meet at an insurance exchange.
Some of their subjects are reported dy-
ing, others slightly better, others about
the same. The policy on the subject
that is dying appreciates in value, and a
sale is either made at an advance or the
holder concludes to keep it. He refuses
a good offer to-day only to regret it to-
morrow when he learns that his subject
is not in dying condition, but getting
better.