San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1884-05-22
Icanlinuai 1r,m Second Pau.. |

[Csafinsed fnvm Second Pays.l
ability 10 invest. A matured Tontine policy
may DO expected 20 yield the following OF
better results. Plan ordinary Life. Tontine
period fifteen years. Ago 30 years, amount
81, 900, 90, annual premiums 75t 20, total
Investment = for iifteen years Sii, S2i IS.
Ifdeath should occur In Tho fifteenth year
the profit ON tho policy would there-
fore bo.......................,,, c2o,OOU,OO
Less fifteen psemiums paid lisa, 20
SAy...................,..,,.. lJ,0Ib, 70
or all premiums paid back 10 heirs with 10
Per cent, compound interest besides past
Insurance Of 100000 for fifteen years.
Al the end Of the fifteenth year the assured
II living has his choice 10 continue the policy
at tho same premium subject TO annual
dividend which the arstyear will DO 81, 20 so
and draw out cash dividend OF 2, f3S rs or
no may surrender tho policy and draw out
tho cash dividend......"""" e7,t3s 10
and the full amt Of reserve 60,49 20
say total In cash....-.."... l3,ts7 90
deduct premiums paid..... 1881 70
and his profits are...".".". 2,l66 10
He thus insures his life for hfteen years
for 10000 and then gets back all his
premiums and ~ per cent compound interest.
Or, IL in goad health, he may convert the
above cash vaiuo into PAID up pohcy, pay
bio at his death, no further preiums being
required, for $40, $4,000. Thus the Tontine
plan gives paid up insurance In fifteen years
at ordinary life rates
Or he may, II In good health, use the cash
dividend of 81, +3S % 10 buy an addition
to his policy Of $l4,4 75 90, making the
amount OF his policy $3.50 w wnioh ne
can now, being hfty-four years Old, carry ~
the original thirty-nine year premium on
2o,ooO,0o In the sixteenth year the prem,
iums VIII be S7oA 10 less dividend We So
or hrst years premium ON ss. f'ovo oso 70
AT this age ordinary ire insurance 70 that
amount would require an investment the nist
year OF ~, z4s,o; VI ne may, whe.ne, IN
good or bad HEALTH with MS cash dividena
OF SN,SS 20 BUY an annuity TOT NE Oh
oeS w ADDING TINS 10 tne annual aiViuena OF
S22S 50 gives cash income OF SSii on
when pays the premiums que annuany on
the S2ooo0, 10 insurance and Soz 90 Desides'
Thus he continues ms insurance All pront:
VI hem may convert the entire oash vaiue OF
the policy SiS.4o1 on into an annuity Oh
SlVoS,Uo payable annuany for the remainder
OF ms hfe.
de thus invests during hiteen years oy
niteen equal annual payments ihe sum OF
$li .S2l 10, which dnring that tune insures
70 his heirs the amount OF Sso,oco,W. Az
the end OF tho nfteen years he may accept
yearly income until he dies amounting 70
nearly ten per cent on his payments,
The above results under the Semi-Iontine
system would be about ten per cent less
The profits would De very much greater ON
o similar policy Tor twenty years. 10 hnd
the investments and results ON similar
policy for $4,000, 90 divide all figures by i've.
Tontine and semi-tontine insurance do not
increase the amount of premiums at all, they
only withhold dividends until the expiration
OF selected period. ct which time the
assured has, II in good health, six, or II In bad
health four options offered him OF using his
profits. Tontine insurance while greatly
increasing the profits and multiplying