The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-05-20
TONTINE INSURANCE AGAIN.
To the Holders Of Policies Upon the Tontine
System in the Equitable Life Assurance
Society Of the United States.

yt W Va LbioEDACu6os LudOC NtOAChb dS
tacks upon the Tontine system of life assurance,
as practiced by the principal companies of the
United States.
The annual new business of the Connecticut
company has run down from $40, 900, 600, in
1866, to about 81, 900, 600 a year, and so large
have been its forfeiturss and surrenders that its
amount at risk is now $50. 600, 600 less than it
was ten years ago. It's surplus is about one
third as much as it was fifteen years ago. its in
come is about two and one-half millions less
than it was eleven years ago.
These results have so embittered this officer
that he makes an attack upon the Tontine sys-
tenn OF life assurance, which has been in success
full operation for seventeen years, as a prctext to
iniure the business and reputation of more sue
cessful companies.
His partisan statements have been seized upon
by a few members of the New York Legislature,
and used as a pretense to obtain a committee to
investigate this system of assurance.
The action of the Connecticut president was
not the work of a philanthrop;st. but the soph-
istry of a disappointed manager directed against
more prosperous competitors with the intent to
injure. The action of the Legislature WAS but
the hasty step of a large body of men. urged by
a few, and arrested by the body itself almost as
soon as taken. AS an attempt has been made
to befog the public mind on a very simple sub
ject, a word of explanation will be opportune.
WHAT IS ToNTINE AssURANcE-PLAIN STATE
MENT ON THE SUBJECT.
The Equitable issues two kinds of Tontine as
surance policies: Tontine Savings Fund and
SemiTontine.
WHAT ARE ToNTINE SAVINGS FUND POLICIES?
They are the same in all respects as ordinary
policies. except that all premiums received and
interest on the same, minus only death losses on
members dying In the meantime and the aver
| age expense of the company, are accumulated,
and divided exclusively among those policy
holders who survive and continue to pay their
premiums until the end of the Tontine period,
at which time the surplus is aScertained and
awarded. This, with the reserve on the policy,
is paid to the assured, either in some form of
new assurance or cash, as he may elect.
The plan is very simple, can be easily under
stood and carried out, and there is no mystery
In 1T whatever, and the accounts are kept so dis
tinctly that the relative results on these policies
are easy of demonstration.
WHAT ARE sEMI-ToNTTNE POLICIES?
They are the same as tine above, except that
they have a surrender value after three years.
THE PUBLIC HAVE THEIR CHOICE OF NUMEROUS
KINDS OF ASSURANCE.
This society offers to the public the various
forms of policy in general use, including endow-
ment. ordinary life, Tontine, Semi-Tontine and
others. 1t is a matter of Indifference to the man
ayers which of these are chosen. The fact that
the varieties of Tontine policies are selected in
greater proportion than others, is because they
are popular with the public, and this is probably
the very reason why the plan is so bitterly at
tackled by one who had not originally the fore
sight to adopt it, but committed himself against
WHY A GREAT PUBLIC GooD rs ACCOMPLISHED BY
ToNTINE Policies.
THE WIDOW AND ORPHAN PROTECTED.
i Nothing human is absolutely free from evil
The object of the life assurance manager should
be to pursue that course which win to the great
est extent correct existing faults in the business
and extend the ultimate benefits of life assurance
to the greatest number. Intelligent nnderwrit-
ers will, / think, agree with me that one of the
CREATES evils at present existing in life assur-
ance is the lack of persistence on the
part of the policyholders in paying their
premiums and the resulting forfeit
ure of policies. Many a wife who has
anticipated the receipt of a competency in case
the hearth stone should be desolated by the
death of the husband, has seen herself beggared
and her children penniless through the surrender
of the policy by the husband, often without the
wife's knowledge, and perhaps for some trifing
reason, the sale of the policy being the readiest
way of raising money.
HOW DOES THE ToNTINE SYSTEM CORRECT THE
EVIL OF SURRENDER?
The Tontine system, introduced by the Eouita-
BILE Life, has, in a measure, corrected the evil,
as will be shown by the following facts.
1T IS SHOWN THAT ToNTINE PoLICY-HoLDERs
ARE MORE PERSISTENT IN PAYING THEIR
PREMIUMS THAN N OTHERS
To show the t%enacity of Totine policies, we
submit the experience of the Equitable Life As
surance Society in regard to examinations of pol
icies, Tontine and Non Tentine, taken in 1875.
The experience of policies issued In every other
year shows similar results; but the issues of this
year are selected for illustration, because at the
end of 1884, no Tontine term had yet matured.
The examinations previous to Dec. 81, 1877. are
omitted in both cases., because during the first
two years no policy, whether Tontine
or Non-Tontine, has existed long enough
to acquire a surrender value. The following
figures. therefore. are a fair illustration of the
comparative persistence of Tontine and Non
Tontine policy-holders, during a period when
the latter are entitled to a surrender value and
are deprived of the large prospective value of
fered to the former as a motive to continue.
TOTAL ISSUES OF 1875. Ordinary. Tontine.
OF the policies in each class is
sued in 1875 there were in
force December 81. 1S77.---.. 1854 1,414
Remaining in force in 1SS4-----. 7l9 1852
Examinations of seven 81 years,
deaths, surrenders and lapses.- 545 1872
Percentage of examinations All 23.5
THE GREAT BENEFITS OF ToNTINEs PROVED BY
RESULTS
This statement shows that the officers of the
Equitable Life Assurance Company were correct
when they expected that the Tontine system
would induce greater persistence among its poll
cy holders. AS shown above only one-half as
many persons have discontinued their Tontine
policies in the seven years, as compared with
those who discontinued on the Or
dinay plan. In judging between the
two systems of life assurance. we ask to which
are attached the greatest ~beneftsg Is it not better
that the policyholders who may choose to dis
continue their policies, while still able to sup
port their families, should incur as a penalty
therefor the loss of a part of . a few premiums
paid in (the other part being absorbed in carry
ing the risk than that nearly double the num-
Der Of widows and orphans who had depended
fathers for their only support in the event of his
death, should be obliged to bear the combined
shock of hereaYemeut and poyertY through the