Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-07-21
LIFE lNSt RANCE.
churches.

Nearly every one lS-OT OuRut W Dc-lu-
terested in the matter of life insurance and
the relations between the companies and the
public should be more fully understood than
they are. In the current number Of the H.
trnatioaal Rerieu Mr.. j. l.. Greene has an
interesting article on the subject, which is
well worthy of attention. According to this
authority, the value of each life to the COM
munity lies in the quantity and quality Of
its product-its culture, character and ma
terial product in whatever form. Each pro-
ductive life has of course, its present earn
ing power each healthy life its period of
probable or average duration by the law of
mortality, and thai earning power during the
period specified has calcuable money
value. The married man is responsible for
the future as well as the present financial
support of his family. The money value OF
a mans life is thus stated by Mr.. Greene !:
Take man thirty.fve years of age, in
sound health, earning $1,000 year II
money is worthy four per cent interest, the
present value of his earnings for his probable
after lifetime, by the American table is $17,-
500. That is the cash value of his life to his
family that is the actual money equivalent
lost by them if he dies that is what they are
in constant danger Of losing that is what he
is imperatively bound to protect them against
losing that IS the value of the substitute he
must always have ready for that contln-
gency. How many Americans earning that
sum, or two or three times that sum, with
dependent families, have that substitute or
any considerable part OF 1t ready and really
available? The loss goes on at Il rate few
apple ciate. Take 100000 men aged thirty
five, in good health, earning $1,000 year
each the present money value of their
ives to their families Is 81 $50, 900, 900; and
during that year there will be lost about
$15 .G55, 500 ten years later the loss is at
the rate of ST., 02l 900; twenty years later
it is at the rate of nearly sea, 900, 900 the
only question as to the community is upon
what families will it strike as to the family
the only question is when will it strike as
to the whole number, so many lives will go
as to the total value of all, so much value
will be lost" These figures speak for them
selves with an emphasis which comment car
hardly increase Uninsured, the family il
left destitute insured, the survivors lost
each small sum, easily paid, and the family
has the assurance of continued support.
As to the proposed taxation OF lif'
insurance companies, MIR. Greene states thu
case against it very forcibly. He says
From the associative point of view, the re
serve is partial payment of heavy losse
while actual losses are still light. A tax OIL
the reserve is therefore tax on losses. elthe
increasing by so much the amount lost by thu
| community, or else by so much, leaving tn,
loss where 1t frst fell, on the stricken family
From corporate point of view it lisa debt
and can not be described otherwise and MS Il
the corporation, tax upon it is tax upoi
its debt, and seizure OF portion of thu
means of paying the debt. AS to compari
son often made Mr. Greene says that ''th'
analogy between savings banks and life in
surance is purely accidental, superficial AM
misleading The single point of similaril,
or suggestion OF resemblance is in the fac
that each receives and accumulates money
This receipt and accumulation is the Purpos
of the bank. 1t is n mere incident to tn
purpose Of life insurance company" Tn
whole subject is worthy of closer investiga
tion and more careful study than 1t general
ly receives; and it would be great gain, t
individuals and the community, were NOR
attention paid ii.