Evening star. [volume] (Washington, D.C.) 1854-1972, 1885-05-20
TONTINE INSURANCE AGAIN.
To the Holders of Policies Upon the
Tonfine System in the Equitable Life
Assurance Society of the United states.


Tonfine System in the Equitable Life
Assurance Society of the United states.
The President of Connecticut company has
recently by advertisements made violent at
tacfls 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 S46,0O0,0OO in
| 1866 to about 81, 900 900 a year, and so large
have been its forfeitures and surrenders that
its amount At risk is now S33, 900, 900 less than
it was ten years ago. Its surplus is about one
third 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 embittered this officer
! that he makes an attack upon the Tontine sys-
! tenn of life assurance, which has been in success
| ful operation for seventeen years. as n preteXt
| to injure the business and reputation of more
| successful companies
His partisan statements have been seized
| upon by few members of the New York Legs
| lature, and used as a pretence to obtain a COM
| mittee to investigate this system of assurance.
| The action of the Connecticut President was
not the work of a phianthropist but the sophis-
| try of Il disappointed manager directed against
more prosperous competitors with the intent to
| injure. The action of the Legislature was but
the hasty step of large body OF men, urged by
Il few, and arrested by the body itself almost as
soon as taken. AS an attempt has been made
to befog the public mind on very simple sub
iect, word of explanation viii be opportune.
WHAT is ToNTINE ASSURASCE-PLAINS STATE
MENT ON THE SUBJECT.
The Equitable issues two kinds OF Tontine as
surance policies Tontine Savings Fund and
s;emi-Tontine.
WHAT ARE ToNTINE SAVINGS FUND POLICIES?
They are the same in all respects as ordinary
fint oil y-a1 anI
interest on the same, minus only death losses
on members dying in the meantime and the
average expense of the company, are accumu-
lated, and divided exclusively among those
policyholders 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 it whatever and the accounts are kept so
distinctly that the relative results on these
policies are easy of demonstration.
WHAT ARE sEMI-ToNTINE POLICIES?
They are the same as the above except that
they have surrender value after three years.
THE PUBLIC HAVE THEIR CHOICE OF NUMER-
OUS KINDS OF ASSURANCE.
This Society offers to the public the various
forms of policy in general use, including En-
dowment, Ordinary Life, Tontine, Semi-Ton-
tine and others. 1t is Il matter of Indifference
to the managers which of these are chosen. The
fact that the varieties of Tontine policies are Sc
lccted i'll greater proportion than others is be-
cause they are popular with the public, and this
is probably the very reason why the plan is SO
bitterly attacked by one who had not origin
ally the foresight to adopt it, but committed
himself against it.
WHY GREAT PUBLIC GOOD IS ACCOMPLISHED
BY ToNTINE POLICIES.
THE WIDOW AND ORPHAN PROTECTED
Nothing human is absolutely free from evil.
Ihe object OF the life assurance manager should
be to pursue that course which will to the
greatest extent correct existing faults in the
business and extend the ultimate benefits of
life assurance to the greatest number Intelli-
gent underwriters will, think, agree with me
that one of the greatest evils at present exist
ing in life assurance is the lack of persistence
on the part of the poIicyholders in paying their
premiums and the resulting forfeiture of poll
cleS. Many Il wife who has anticipated the re-
celpt OF Il competency in case the hcarth-Stone
should be desolated by the death of the hus.
band, has seen herself beggared and her child
rem pennileSS through the surrender of the
policy by the husband, often without the wife's
Knowledge and perhaps for some trifiing rea-
son. 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 Eoui-
table Life, has in measure corrected the evil
as will be shown by the following facts
IT IS SHOWN THAT ToNTINE POLICYHoLDERS
ARE MORE PERSISTENT IN PAYING THEIR IRE
NUNS THAN ANY OTHERS.
To show the tenacity of Tontine policies we
submit the experience of the Equitable Life
Assurance Society in regard to Examinations of
policies, Tontne and Non-Tontinc taken i'm
1879. The experience of policies issued in
every other year shows similar results; but the
Is ueS 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 be-
cause during the first two years no policy
whether Tontine or Non-Tontne has existed
long enough to acquire surrender value The
following figures, therefore, are fair illustra-
ton OF the comparative persistence OF Tontine
ana Non-Tontnc policyholderS during a period
when the lattcrare entitled to a surrender value
and are deprived of the large prospective value
offered to the former as motive to continue
TOTAL ISSUES OF 1875. Ordinary Tontine
Of the policies in each class
issued in 1875 there were
nforcc December 81 1877. 1864 1411