Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1886-11-06
UNIFORM ASSESSMENT RATES AS
PRAOTIOED BY THE BQUITA-
BILE LIFE ASSOCIATION OF
WEST VIRGINIA.
From Endowment Advocate.

The plan OF the Equitable in levy
ing assessments on its members to
cover death losses, is what is com
monty called the uniform method y
that is, each policy holder of the
same age, carrying the same amount
of insurance, is assessed the same,
and, when one member is assessed
all are assessed. Thus as to amounts
and number of calls the assessments
are uniform. When the returns have
been received by the company, the
entire amount belongs to IN OBITUARY
FUND.- less nctual cost of collection,
This is at once set aside for
payment of death losses. In order
30 fix a yearly maximum cost on its
policies the Association reserves the
privilege to levy twelve assessments
during the year, before paying extra
death losses from its accumulated
mortuary surplus. When such losses
are paid the entire membership are
at once notified rs to name Of per-
son, post office address, cause of
death, witnesses thereto, amount of
insurance, accompanied with a re
ceipt to the individual policy-holder
for his pro rata share of payment.
BY this method any member of the
company can estimate the possible
cost Of his policy during the year.
The average annual cost will be
much lower than maximum esti-
mates. But for the encouragement
of our policy holders who fear too
much cost on their insurance, we will
allow them to assume that the esti-
mated maximum will be the yearly
average. In that event, man aged
40 years insured for 81 900 on the
life plan, would pay annually S2076.
This includes twelve assessments and
two semi-annual dues, the total of
which is a little less than two-thirds
of the cost of similar policy in an
Nold line" company. At the a9e OF
80 years the expectation of life is 20
years. Should the insured live out
the time he will have paid to the
compsny S581.2S, which is after all
a good investment, to say nothing of
The protection afforded during the
time and the satisfaction growing
out of it. Suppose the insurance is
taken out on the Is year endowment
plan. This practically shortens the
term IL years. The annual cost CON-
puted in the same way would be
s34.76, which in Is years would ag-
gregate $52l.40, difference Of $780,
SO in favor of a 10 year endowment
over a life policy. Assuming that
the insured would live out his life
expectation according to the Ameri-
can table the money invested at
per cent. simple interest would
4mount to 100000, or $l38.60 more
than it cost to obtain the endowment
of 81 900.
SnOTJcF btIlu cHuON ulSlCS COSG
more because the company furnish
ing the same has less time to mature
the money by collections and accu-
mutations of interest, also, because
at the end ofshort endowments there
are likely to be more survivors than
at the end of longer terms.
All practical business men can see
st a glance that better investment
cannot be made with the same out
lay of money, paid out in such small
amounts at time, than by taking
one of the company's endowment
policies.
The uniform method of assessment
also enables the Association to assess
FOR the average death losses occur
ing in 1000 members, and thus
secures uniformity of costs to its
members according to age and
amount reinsurance. By this method
an increase of members does not add
increased cost to the insurance or
lessen the Company's ability to meet
its increased obligations. The cost
to the policy holder remains practi-
cally the same after the company has
obtained its frst 1000 members. No
other method secures these benefits.