The National tribune., 1885-04-02
TONTINE INSURANCE.
The President of the Connecticut Mutual Life Says
Ii is Merely Gambling,

The President of the Connecticut Mutual
Life Insurance Company has written a letter to
the New York Tribune respecting certain forms
of life insurance known as "Tontine," Semi
TOntina" and the " Distribution Plan" which
he says are nothing more nor less than pure
gambling. 1t is of too great length to publish
in full, but we make the following extract:
DEFINITION OF ToNTINE INSURANCE.
What now is the essence of Tontne in life insur-
ance? My family need my life; if they lose it
they lose money which they cannot afford to lose;
they in daily danger of losing and its money
value; this danger they cannot help nor avert; /
have placed them under that danger; must guard
them against it to my utmost ability; the only way
can do adequately and at once is to insure them
against the loss Of my c's money value; therefore
] must insure il is my clear, simple manly duty
it is equally my duty to that they do not lose
that protection for any needless, willful cause. L
know that each year my chance of death will be
greater and my premium would therefore naturally
increase. do not wish to pay premium which
will grow yearly higher, too high for pay if
i've; so i VIII pay a level premium each year,
which will be more than my risk costs for many
years, but less than it would cost after awhile and
the company will reserve the excess of premium
cost i'll the early years to offset the of
cost over premium i'll the later years, and | have
never to pay more than a certain amount. Now. it
may easily happen that by long Illness, loss of
means loss of occupation, become unable to
pay my premium; by Just much my family need
the protection of the insurance all the more, for
have the less for them outside OF that. But can't
pay longer. How viii my family fare? Suppose |
had been insured for 20 years in the Connecticut
Mutual under its present contract, for $1,000, ana
was 40 years of age when began, and had to
stop now; Tuy pulley would be paiCl-up insurance
for =, ,220; / should have paid for my 20 years of
insurance FOR SiOGD and contributed besides the
fJiud 50 s34 So against my expected greater
risk in the future: but n | can't pay, the company
wont have that future risk to carry the $1,000
and therefore has no future use for the S3.SSt6O
held to meet it; and it converts the S. s3iG0 less
small surrender charge into a single premium for
pAid-up insurance aud my family has permanent
provision of at least -. 30.
Now mark this the 81 3S34.60 is held by the COM
pany only rs a reserve against my future risk, on
the expectation that they to carry the risk if
live, and s just equal to the difference between the
value of that future risI, and the value o the future
premiums may be expected to pay. They have
been fully paid already for the risk for the 20 years
aud besides have been paid 81, ,S}iG 90 on account of
the future risk for $4,000 from which they
re ieved by my failure to pay further. Obviously,
they have further use for that S3,S3i6O; il
paid in to protect my policy for my family: if il is
not TO protect my family any further at all it ought
to be returned to me or to my family; or, If the
company proposes to retain it. then ii ought to he
applied far as it will go, to the original purpose
for which It paid; that is TO the protection of
my family; and so applied. it will protect them
permanently to the extent of nj least %, ,220.