New-York tribune., 1885-03-08
THE TONTINE SYSTEM
PRESENTATION OF IT'S MERITS.
WHAT OFFICERS or THE NEw-YoRK LIFE AND
THE EQUITABLE SAY.

| Life and the Equitable Life Assurance soeie'y
| been made by the president OF Harloru i'o .,,
| anco company. lie makes the demeritS VI
Tontine system the chief topic In his annuai roPo'"
Gently published In the columns OF THE ThboNh 49,.
conclusions were reinforced In another comhun'
| lately published from actuary In tniS CIV,
Meantime the great companies most directly conoe,"
have not appeared before the public at all on inc
To ascertain their views reporter was sent ou' '''
| day from THE TRIBUNE
WHAT WILLIAM II. BEERS SAYS
| At the New-York Life Insurance Company no was 10
ceiyed by Mr. William H. Beers tho yce-presideht anu
actuary, with whom substantially the following GUN
| versation occurred
Q-Have you read the late criticisms uponTontine In
| surancc
Al have glanced over them
Q.-What do you think Of them
A-Wel / think President Greene, who attacked 'ho
system in his annual report. and Mr. Fackler VINO ho
follows him. only fighting against the ineVl'aoio'
Q-Then you don't agree with them that Tontine ihsur
ance is gamblingi
A.-Al insurance is dealing in uncertainties ana u"
insurance has had to the criticism that IL was "
wager or gambling Do Won know the courts nad TINS
matter before them the carly days of life Insurance.
and decided in so many words that strong propao"
of the continuance OF the life is sufficient 10 save INC
contract THAT tho ordinary life contract from peus
deemed wager" In exactly the same way tho s'rohH
probability that will keep up his Tontine pohcy
1t from being wager either In law or III Iact
Q.-I see. Mr.. Fackler speaks of two forms OF Ton
| tine; will you please explain the differences
| A.-Cnder the original Tontine policy, II man
stopped paying before the Of his Tontne PERIOD he
received protection while his policy was In foroe' anu
nothing further the surrender value or MS poicy anu
the accumulated surplus being transferred TO the iu
for the benefit Of those who continued their poe'es
| Under the new form-the non-forfeiting limited
| Tontine-as issped by tho New-horK L'ic'
| only the surplus is retained the insured receives
pai-up policy his surrender yaine. tho same as
under an ordinary life contract This form President
Greene entirely ignored in his article and Mr. Facker
practically ndorses it. The only attack Is upon the
| straight Tontine.
Q-Do you regard the original Tontne contract as de-
fensblel
A.-Entirely The whole subject lies In
q nutshell The question for every Intelligent
man to decide is Shall draw my dividends annually
aud the right TO demand surrender-value In
paid three years, shall let my div
idends with without my surrendcrvslue) go on ac-
cunuating the sole benefit OF those who live ana
keep up their payments, OF whom Imay or may not DO
oneI In other words shall choose smaller but more
certain profits go along shall choose greater put
profits and benefits at tho end OF my Tontino
| period
Q-wcre the forfeitures numerous under the old style
| OF Tontinci
| A-The lapsing OF policies was always largo before
Ton,ine insurance thought Of Bat under tho Ton
|
be principle of human nature that men will neglect
matters OF Importance unless there Is some sort OF com
pnlson to make them attend to them. Tontine inslr-
ance emphasizes the danger OF forfeiture aud
the reward OF persistence. The result IL that
men keep up their policies. This Is one of the
virtues OF the Tontine system keeps men Insured Tho
lapses mostly during the first three years. when no
surrender value acorues under ordinary form OF life
| policy not Tontine.
| THE INSURANCE ~ TIE FUTURE
o-You spoke Of fighting the inevitable do you think
Tontine likely TO be a permanent form Of insurance
A-Tontine only likely 10 be permanent. but the
indications IL s In some FORM to be the insurance Of
the future You see, the advantages OF the Tontine
do not entirely In Its largo returns but quite
as much In ne option NJ ,H eash raise. continued '
surane, at The end ~ the Tontre period Under an ordi-
nary life policy you getnsurance at the lowest premium
rates under al endowment policy you pay more, but
receive cash at the end Of the endowment period but
under Tontino policy you have your Insurance NJ
the lowest rates. and receive In cash at tho end ot
stated period the surplus accunulations and the
entire belonging to that particular policy or you
can continue your Insurance original premium rates
II practically gives endowment Insurance AT the Ire rate
of premium, with the added privilege OF
continued Insurance II desired which the endowment
POLICY does not give
| o-IIow have Tontnes succeeded thus far
A-The success Of the Toutine companies in se,ur'ng
business AMI keeping their policy Is simply
are supposed he intelligent and TO have reasonable
regard for their interests and II the taking OF this
class OF policies by them Is indication OF their udg
ment they have pronounced very emphacaly In FAVOR
OF system OF insurin whereby they can at stated
times demand and receive their entire equity. both
and surplus either In cash or In Insurance as
| their circumstances may dictate.
| o-Dont the n-Tontne companies pay surrender
| values In cash
| A-some do and some don't but mono OF them pay IN
cash the full Imagine yourself paying premiums
ill you are old all your children grown perhaps dead.
and no one but yourself 10 for and then imagine
yourself unable 10 get than nifty TO seveny-hye
per cent Of the your policy II any one has
| tears to shed, let him shed them over policies
that were allowed lapse because the motive to Keep
them up wasn't strong enough and over policies kept mp
tl insurance was 10 longer needed and then with
out definite cash value, and sold for song Thousands
OF men die every year who carried Insurance. but
dropped their policies entirely took small paid up
policy when II they had taken roDtnes they would have
kept them up and their families would have been the
| gamers thereby.
Q-what is the motive for the present attacks the
| TOntine system
A-we, it Is difficult for any OF to feel when sur
passed by a competitor, that his is fully de-
| served, and our failure duo to any
! shortcoming our part. We are very apt TO
persuade ourselves that ought to have
succeeded, aud that there Is something wrong in our
neighbor's methods. When President Greene assumed
the management OF the Connecticut Mutual. II the
second company size and influence In the country.
Under his administration 1t has lost that high position
and much OF the prestige II once had do not say his
nanag cement not been juIcious he may have inner
tied difficulties from former administration; but II has
been successful to ali appearances at least Tontnc
succeeded because In opinion has deserved to
succeed because 1t has supplied real need life In
surance.
JAMES W. ALEXANDER's VIEWS.
Tho reporter next obtained interview with Mr..
James W. Alexander, yce-president OF the Equitable
Life Assurance Society," Mr. HYDE the president, being