Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1884-09-12
INSURANCE BENEVOLENCE.
The Mutual Endowment Scheme Of
America.

WI ~
Young Never Live Long Enough
and the Old Die too Soon TO Get
Their Money Out of II.
We submit the following from the San
Francisco Coast Review for the sake of fur
Their explaining what was referred to in yes.
terdsy's SENTINEL. 1t will be of advan-
tage to those interested and to others, per-
haps, to read the article:
The membership is divided into two
classes-life and endowment. The latter
embraces nearly the entire membership of
the association. II is likely that the ''life
insurance" branch is maintained to invest
the scheme with q qussi-respectsbility
which would not other wise attach to what
is simply q mutual loan association
operated by irresponsible parties.
The 'life" member receives Q certificate
payable at death only. The endowment"
member receives a certificate with five
coupons, each OF which represents one-fifth
Of the amount insured and is payable at
the expiration Of q fifth of his "expecta-
ton" For example, at the age of rs the
coupons mature at the end of 10-year
periods. The expectation table is based
on no accepted mortality table, but it is
very liberal for the managers. The average
member can expect to live to collect only
three of his five coupons, but is required
to pay assessments based on the expecta-
ton OF collecting all. But as the ~associa-
ton cannot possibly survive long, this
little discrepancy is 9 minor consideration.
The member who collects one coupon will
be a lucky man.
The coupons OF members who join at the
age so to SIS mature in four year periods.
Tempting inducements are thus held out
to old gudgeons, who are promised advance
loans on their coupons. The coupons in
the hands of the old men and women first
mature, and it is upon their coupons that
money from the endowment fund is loaned.
This feature bears ~unequally upon the
young folks, who must wait until their
elders are served with advance loans"
Their coupons do not mature for 8 to 10
years; but the managers depend upon the
hopefulness-and greenness-of the young.
The assessments are graded according to
age, running from 20 cents to ST. IL per
ST., 600, and are levied on the death Of q
member. There is also something in the
nature Of an advance assessment. One
fifth OF the amount collected goes TO the
beneficiary and the remainder to the
endowment fund.
1t is therefore q sort Of lottery scheme,
in which the member wagers that he will
live out his expectation. He pays for
"life insurance" and agrees that if he dies
his dependents shall get only one-ifth, the
other foursffths going to 8 few Of the old
est survivors. 1t is the old gambling
spirit in human nature that is appealed to,
but the membes who expect to get some
thing for nothing lack the gamblers
~shrewdness. They invest in q lottery with
out reputation, without security, without
prizes.
For the purpose Of advertising the en-
terprise-ss small prizes are paid by q lot
tery-the endowment fund, or q par. Of
it, is loaned to members whose coupons
fret mature-to the old folks-and these
little loans are most judiciously distrib-
| uted as to territory. 1t is q good advertis-
ing dodge and dupes many ignorant peo'
Pile.
What does the association promise A
'Vindication and explanation OF its plan
| aud theory" declares that every holder of
a matured coupon will have received at
the very least four dollars for every one
expended |" The assessments, il insists,
will not average over 10 to IL annually.
To the man Of so years il offers q SIS 900
certificate at the rate of S. 80 per ASSESS
ment. This certificate it agrees to pay in
20 years, in five qusdrennial payments of
81, 900 each. For how much does it offer
to do this? For an average payment OF
500 ~ annually. The total cost for 20
years would be as follows:
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