The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-05-20

more than any other system which has been de-
vised rewards those who continue the payment
OF their premiums. These policies in their cash
settlements have proved more profitable 10 those
assured than any other system now practiced.
No one questions the enormous profits to fami-
lies Of those who die early.
Laying aside the reinements of calculation
gwen TO us by the actuaries, which we are not
disposed to dispute, there is another view In
which 1t seems preposterous to pay dividends TO
those who have paid in only a few premiums on
their life assurance policies. and then realize the
entire sum assured for, at a profit to them, per
haps, of three or four thousand per cent. The
Tontlne plan rewards those who keep their con-
tracts rather than those who break them, and
puts the profit of the business where it belongs.
DIMINISHED DEATH RATE AMONG ToNTINE poll
ICYHoLDERs MAKES H PROFITS LARGER
One of the chief reasons why the Tontine
policies OF the Equitable yield large profits to
those who complete their Tontine periods, IS the
smaller death rate experienced among the hold
es of these policies than among those insured
on the ordinary plan. This is explained by the
fact that those who take Tontine policies are
generally persons of independent means who ex-
ercise a wise forethought as regards the future,
and who are therefore. as a natural consequences,
a better class of lives than those who take the
ordinary form, under which is merely sought
protection in case of death. Not only is this
needed. protection obtained under a Tontine
policy, but the holder also looks forward to reap
ing a benefit from it himself during his own life;
hence there is a natural selection as regards the
rate of mortality in favor of those who are
assured on the Tontine plan far more subtle In
Its nature than the greatest care OF the medical
examiner AS a demonstration of this fact, a
statement is given below of the ratio of death
claims paid to total premiums received, during
the ten years from 1870 10 1884 nclusive-trst
OF the Tontine policies of the Equitable: sec
ondly, of the four largest companies in the
United States which do not issue Tontine poll.
cies Including the Connecticut Mutual); and
thirdly, of the Connecticut Mutual taken alone:
Ratio.
Equitahle's Tontine policies 1928
four companies 3o.ol
Connecticut Mutual 1851
These figures speak Tor themselves.
In the face Of the fact that the death claims
paid by the Connecticut Mutual are twice as
large in proportion to their premium receipts. as
under the Tontine policies of the Equitable, no
wonder that the Connecticut president, even
while abusing the system of Tontine assurance,
cannot help acknowledging the realization of
large profits under this plan.
EXPERIENCE OF A P-oLICYHoLDER IN THE EQUTT-
ABLE AND CONNECTICUT MUTUAL.
AS an illustration Of the superior advantages
of the Equitable, the actual results are here sub
mitted on two policies issued at the same age
and for the same amount, one in the Connect
cut Mutual and the other in the Equitable.
Connecticut Mutual.
Premiums paid on an ordinary life policy of
S.. 600 issued at the age of forty-one, by the
Connecticut Mutual.
Portion of premiums paid in cash, notes were
given for the balance of the premiums which
will be deducted from the policy at death.