The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-05-21

snce Society OF the United States.
The President of q Connecticut company
has recently by advertisements made violent
attacks upon the Tontine system of life as
suIar ce ss practiced by the principal COM
panies of the United States.
The annual new business of the Connect
ont company has run down from SAG, 900
in 1860 to about 81 600, 600 q year, and so
large have been its forfeitures and surren-
ders that it's amount at risk is now s33 Co.,
coo less than it was ten years ago. It's sur
plus is about one third as much es it was
fifteen years age; its income is about two
and one half millions less than it was eleven
yeas ago.
These results havs so embittered this
officer that he mskes an attack upon the
fontine system OF life assurance, which has
been in successful operation for seventeen
years. as q pretext TO mare the business and
reputation OF more successful companies.
His parti-an statements have been seizsd
upon by few members of the New York
L. gislsture, az used as preference to ob-
tain committee TO investigate this system
of ASSURANCE.
i
was not the work of philanthropist but
the sophistry of disappointed mansger di-
reoted against more prosperous competitor,
with The intent to injure. The action of the
L. gis)stuIe was but the hssty step of large
bodv of men, urged by few, and arrested
by the body itself almost as soon as taken.
As q tempt has been made to befog the
pubic mind on very simple subject,
word f explain alton will be opportune.
WHAT Is ToNTINE AssURAEcE-PLAIN STATE
MEnT ON THE SUBJECT.
The Equitable issues two kinds of Tentins
assuIanc e polices Tontine Savings Fund and
Seni-Toniine
WHAT ARE ToNTINE SAVINGS FUND POLICIES?
They are the same in all respects as ordi
nary policies except that all premiums re-
csiytd and interest on the same,
minus only death losses on members
dyirg in the meantime and the aver
age expefss OF the cOmLanr, are &C.
cumulated. and divided exclusively among
those policy holders who survive and con.
time 10 Day their premiums until the end
CT the Tontine period, at which time the
surplus is aIcsrtainsd and awarded. This
with the reserve on the policy is paid TO the
assured either In some form of new assur.
ance or cash, as he may elect.
The plan is very simple, can be easily IN
derstood and carried out, and there is no
my stery In ii whatever, and the accounts are
kept so distinctly that the relative results ON
these policies are easy Of demonstration.
wnAT ARE sEMI-ToNTIEE PoLIcIEs2
They are the same as the above except that
they have surrender value after three
yesIs.
THE PUBLIC HAVE THEIR CHOICE OF NUMEROUS
KINDS OF ASSURANCE.
This society offers to the public the varinu us
fol ms Of policy in general use. including
Ell dcwnent, Ordin ary Life, Tontipe Ssmi.
Tontine and others. 1t is q matter of in
difference 10 the managers which of these are
chesen. The fact that the varieties of Ton.
tire policies are selected in greater proper
ton than others, Is because they are popular
with the public. and this is probably the
very reason why the plan is so bitterly at.
lacked by one who had not originally the
foresight to adopt 1T. but committed himself
against ii.
WHY GREAT PUBLIC GOOD IS ACCOMPLISHED BY
ToNTINE PoLICIEs-THE WIDOW AND ORPHAN
PROTECTED.
Nothing human is absolutely free from
evil. The object of the life assurance man.
ager should be to pursue that course which
will to the greatest extens correct existing
faults in the business and extend the uli-
mate benefits Of life assurance to the great.
est number. Intelligent underwri will,
think, agree with mo that one Of the great
est evils at preset existing in life assurance
is the lack of persistence on the part of pol.
ICY holders in paying their premiums and
the resulting forfeiture OF policies. Many q
wife who has anticipated the receipt of a
competency in case the hearth stone should
be desolated by the death of the hueb lad,
has seen herself beggared and her children
penniless through the surrender OF the pol-
icy by the husband, often without the wife's
knowledge, and perhaps for some triding
no al r fho oil ha;u !,
iest way Of raising money.
HOW does THE ToNTINE SYSTEM CORRECT THE
EVIL OF SURRENDER?
The Toptipe System, introduced by the
Equits BILE Life, has in measure corrected
the evil, as will be shown by tbs following
facts:
1t Is shown that Tontine policy. holders are
more persistent in paying their premiums
than any others. To show the tenaclty of
Tontine policies, we submit the experience
OF the Equitable Life Assurance Society in
regard to the Examinations of policies, Ton.
tine and NoR.ToDtine, taken In 1915. 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 De-.
cember 81, 1877, are omitted in both cases
because during the first two years no policy,
VT ether Tontine or Non. Tontne, has ex.
listed long enough to acquire q surrender
value. The following figures, therefore, are
fair illustration of the comparative per-
sistence OF Tontine and Non. Tontine policy
holders during period when the latter are
entitled to a surrender value aud are de.
prived of the large prospective value offered
to the former as q motive to continue:
TOTAL ISSUES OF 1875. Ordinary. Tontlne'
OF the policies in each class
Issued IL 1875 there werein
force December 81, 1877 1854 114
Remaining in force in lsSi 7i9 lOs2
Examinations of seven %
years. deaths, surrenders
and lapses .....-................. SIS $50