The Washington critic., 1886-10-09
LIRE fNsURtyrE Ar COST
The Equity system of the Citizens
NInImnI of New Nnrk.


The Equity system of tho Citizens
Mutual OF New York.
In the earlier history Of Life Insurance
In this country, as the veteran solicitor will
remember, IL was frat found necessary,
before securing a risk, to explain the nature
aud value Of the investment-to dlspel the
preludices and illuminate the darkness that
surrounded the subject The generality OF
people who had never investigated this
branch OF Insurance, were at loss to un-
dcrstand how anything of value to them
selves was to be realized by the annual pay
ment OF premiums into the keeping Of a
Trust Company entirely outside of their
control. They could do better with their
money and keep Its management in their
own hands. These ideas, however, soon
gave way to better comprehension OF the
principle involved. The wisdom, and even
necessity Of making some safe provision
against the reverses Of fortune and contin-
gency Of death, rapidly came to he recog-
nized, until to-day IL is rare to find an in.
tCllgent business man who is not thor
oughly convinced Of the utility of life nsur-
anCe, reckoning II as one Of the greatest
material blessings vouchsafed to mankind;
and the grand army Of policy.holders com
prises not only those OF moderate means
who adopt this method OF securing their
families against the possibility of future
want, but thousands upon thousands OF
capitalists and men of wealth who find In
life insurance one Of the safest and most
profitable fields of investment the aggre-
gate value Of life insurance in the United
States being not less than g., 900, 100000.
Yet life insurance, like other sciences, Is
progressive and makes new discoveries. II
hds been shown by the experience Of years
az tta ia, fpa Al haafe
adhered TO 10y the old.liuc companies, Is not
only unnecessarily high, but 10 proportion
10 the iiSk assumed, excessive; thus re
tultng IN the accumulation OF immense 70
serves, which, in the judgment of the best
nCtuatiCs, are not 80 uiuh evidences OF
wealth or strength, ns OF a deferred lla-
biliy, which experience has also shown 70
be exposed To- peculiar perlls. Hence the
gradual development OF new era, the
theory Of which is that life insurance, iu-
stead Of being iu the nature OF Il heavy tax,
Is something 10 be purchased like any other
necessity, where the largest amount eau be
secured at the lowest cost consistent with
| the principles of equity and reliability.
Out Of this idea grew the assessment plan,
| which In many RESPECTS Is descrvedly pop
| ular; but II seems to have been reserved for
the Citizens Mutual Life Insurance Asso-
| ciation Of New York to meet all the require
| ments OF popularity, Cheapness and un-
| Questionable safety, more nearly than any
| other insurance organization Of tho day.
| What Is known rs It's Equity system Is
| an entirely new aud remarkably successful
| departure; the OutgtOwth OF prolonged
| and careful comparison Of the relative ad-
| vautages Of different forms Of life insurance;
retel tlon Of the best features OF each, and
| an elimination OF whatever Is known to be
| Objectionable.
The Equity system Is really an exempli1
| cation Of the principle Of cooperation in its
highest and best form. Under this system
there are no unnecessary payments by the
| insured nor vast accumulations, but the
surplus is apportioned among all the poll
cies in force at the expiration of each period
| OF ten years from the year In which they
| were issued, and the surplus thus appor-
| toned to each can be utilized, at the option
Of the policy holder, either to pay future
premiums or to increase the amount of in
surance, or 1t can be withdrawn in cash; so
that every policy issued under this system
is virtually ten-year Tontine endowment.
The surplus apportioned, when applied to
increase the amount Of policy, Is non-fer-
feitable, and can be withdrawn at any time,
or used to pay current premiums IL the
necessity should arise for so doing.
Accident benefits are also granted to each
holder Of life policy who desires 1t, upon
equally favorable terms, and the associa-
| tlOu DCeIlCt, uu
which issues on a schedule of low monthly
rates poliries that are participating aud
entitled to dividends the same as those for
larger amounts. Thus the association pro-
vides for its members against the adverse
contingencies Of life, as well as gives Of.
fectual protection to the family or bene
iiciaries OF its deceased members.
The Citizens Mutual is organized undel
the laws of the State of New York aud II
oillcered by gentlemen OF experience ant
ability, Levi NJ. Bates, late of the great dry
goods firm Of Bates, Reed S Cooley, beinl
The president, and ii. /. Kimball, wei
known from his conspicuous Identification
with the interests Of Atlanta and the South
vice. president and general manager.
Mtssrs Mulliktn e Cox, the Washington
agents of this association, have opened an
Office at 1919 i street. Two large rooms
on the second floor have been fitted up IN a
handsome and elegant manner, providing
most comfortable quarters for the transac
tion of the business of the firm. A massive
counter and desk of stained cherry occupies
the front ROOM with number Of smalle
desks for the various solicitors. The rea
room Is the private Office OF the firm, fitte(
up in TASTEFUL but not eXtravagant, style
A private office for the medical examine
has also been arranged. The firm will b
ready for business on Monday.