, 1889-10-09
RETAIL LIFE INSURANCE.
A BRANCH OF THE BUSINESS GROW
ING IN POPULARITY.

Plan works-Agitation in England About
It's wisdom-Its Extent In the United
States
The branch of life insurance known as
industrial insurance is comparatively
new in this country, but it has already
sumed large proportions. One com
pany in this city has lion nearly 1,700,-
900 policies outstanding, the amounts
a~ggregating not far from 5000, 900, 900.
Industrial insurance is practically in
surance sold at retail; hence, of course.
the rate OF premium is higher than in
the regular line. But as the premiums,
ranging from five to fifty cents, are pay
able weekly, it enables persons of limited
means to provide themselves with insur-
ance, which otherwise they would be
unable to do. The necessity of regularly
laying aside the necessary sum to meet
the payments as called for, tends to in
culcate habits of economy and thrift in a
class too largely improvideut. On the
average the agent has to call for premi-
ums but once a fortnight, as many of the
policy holders pay two or more weeks in
advance. The amount of insurance is
limited by different ages. Under 10 years
payments of not over twenty cents per
week will be received; this can be in
creased five cents per week for every
year till the 21st year, when the max
imum amount of insurance allowed
under this form of policy is reached, viz,
$3.50, at a weekly premium of fifty cents.
But the feature of the industrial bust
ness that has excited the most comment
has been the insurance of children. On
position has been excited in some quar-
tiers against the system on the ground
that the insurance of children furnished
a temptation to infanticide. In the sew
eral official Investigations that have taken
place not only was this entirely dis
proved, but it was shown that the per-
centage of mortality among insured chill
dren was less than the average. The
charge Of inducing infanticide was first
preferred in England in 1851, and a par
liamentary committee after three years
OF investigation reported that no neces-
sity for legislation existed. Twenty
years later the agitation was revived,
when Thomas Bond Sprague, president
Of the British. Institute of Actuaries.
proved conclusively.that these suspicious
were ~unfounded. In Liverpool instead
OF the mortality of insured children ex-
ceeding the general child mortality 1t
was greatly less, and the same held true
of other towns.
In a report in 1876 of the Prudential,
of London, the largest industrial com
pany in the world, 1t is stated that the
experience Of the company for twenty
five years completely negatives the idea
that ~malfeasance is practiced. The
charge has no existence among even the
squaEd populations of London, Liver
pool and Birmingham. A committee of
the Pennsylvania legislature unani-
mously refused to report a bill to restrict
the insuring of persons under 10 years of
age.
MI. I. G. Dewey, of the Prudential, oil
London, testified before q committee in
vestigating this subject in Great Britain,
hat the company had upward of s,0OO,-
900 industrial policies in force, the aver
age duration of which exceeded six
years. OF these % per cent. were upon
the lives of children under 10 years of
age. Great precautions were taken
against sickly lives being insured. Sta
dstics were given showing the extent of
tho insurance of children. AT the last
census there were 6,600,0 900 children
under 10 years of age in England and
Wales. Reducing this number 20 per
cent, about the basis adopted to decide
ON school board accommodations, there
would remain a possible 5000, 900 of in
surhble children under 10 years of age.
OF these 1900, 600, or four out of five,
were insured In some form.
In the American Industrial companies
children are taken at any age after one
year. Under the age of 13 no medical
examination is required, but the parents
must certify as to the good health of the
child and the agent must certify that he
saw the child in health. To avoid the
risk of infanticide, the business of repu-
table companies is carefully regulated.
They have adopted the policy of grant
ing and increasing insurance for q uni
form premium, 80 as the child advances
in years up to 10 the benefits increase.
The maximum is thus reached about the
time when the child of working people
becomes old enough to be himself q wage
worker.
Thus far n uniform charge of five cents
per week on a policy written in the year
preceding the child's second birthday,
v thicS hlOuilS Ill less lildn one year
had elapsed $15 would be payable al
death. After 1 year SIT, after Q years
$50, after . years S35 and after II years
when the child would be 10 years of age,
$115.
This is the maximum amount, at five
cents per week, and will continue at that
mount through life. 1t may be increased
proportionately by large payments, but
under the age of 6 years no higher pre-
MUM than ten cents will be taken nor
more than twenty cents under 10 years.
The two largest American companies pay
no claim till the policy has run three
months, the others grant a fractional
amount the first quarter. All companies
limitthe amount of insurance a child car
carry, and if policies are written in more
than one company, and the sums of all
the premiums paid exceed the above Linn
its Of a single company, the policies are
void. At death a proof of loss is required
from a physician giving full details of
sickness or else a certificate from the
orone Death claims to the number of
e,944 on children under the age of IS