Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1889-10-13
THE RICHMOND DIsPATCH--sUNDAY. OCTOBER 10. 1889.
s.v,n,v.sve MIlrlon. Of Life Insurance.


We call attention TO the big advertise
mani ~ the proyidcnt Savings Life Assn
rance Society OF New York. Mr.. SHEpPAEpo
HoNAss, the distinguished actuaIy, ana
leading insurance-man Of the world To-Day
il its president and actuary.
Mr.J. &. JoxEs is the manager OF the COM
pany for Virginia, North and South Carroll
ma, with offices in the Shafer ouiiding. re
has written three millions OF insurance II,
North Carolina in less than three years, anu
expects to reap big results rom inc s"s-
ciOus businessmen of Virginia.
The special feature OF his company Is 70
furnish life insurance unmixed with rank
ing orinyestment. Life insurance mas beeh
purchased hitherto by level or unchanging
premiums which involve of necessity de-
posits for mere accumulation, and Is there
By made unnecessarily expensive; By tne
renewable term plan OF the Proyident cav,
ings life insurance Is furnished az actdi
current cost for death claims and necessary
expenses during each separate term select;
ed while the right is given to renew ana
extend the insurance for the whole remaln-
der Of life if desired In this way the cost
is only about one-hGlf the premium usually
charged. Not only IS renewable term lnsu;
rance cheaper. but 1t IS safer than the oid
system, because the hazards lnseparable
from the custody and management OF trust
funds are avoided. The misnanagement OF
trust funds has been the chief, II not the
only. cause Of failures among lite-nsurance
companies.
Mr.. Romans claims that the true function
of life insurance is 90 enable man 10 pro-
tect his family or estate should he he re-
moved 10y death. and chat such protection
is more valuable while tue children are
young and dependent than when they are
grown and established inliic. WEena father
gives his children doh babies and hobby
horses, they need insurance protection; but
when they have real babies and real horses
of their own thCv no longer need such pro-
lection. Hence life insurance IS valuable
during the active period If lie, and tut
rarely during mans old age. Where cap
ital is in demand mt high rates of interest to
foster local interests. Is il not folly to choose
investment life insurance when simpler
safer. and cheaper form can be secured,
The insurance commissioner Of Massa-
chusetts. IN his official report for 1891, says
very tersely: Il am moved to express % Re-
greet Shared | believe, 10y the conservative
and most sagaciOls men IA the business
that our insurance establishments have
adopted schemes If insurance whereby they
nave become 80 largely institutions OF IN
vestmcnt. This may be legitimate IN GER
tain sense. but it has no just relation 90 iite
insurance. 10 unite. more than need be,
for the assurancoO OF It's contracts, the proper
business Of an insurance company with the
functions of a savings bank, makes q COM
hination both homogeneous and unwlsa. A
proyident person viii do wiser 10 buy ms
Insurance Of an insurance company, and
make his deposits. if he wishes 90 make in
vestments of that character. with some req
ular savings institution whose de bust
ness * the administration If trust funds.
THE normal cost of life insurance Is fixed
by an immutable law of nature. For the
man who wants insurance, tine plain life
policy with no investment beyond what Is
needed toprotect theinsurance Is the cheap
est and best. If insurance and Investment
are the object. each can better be got in It's
separate place than bva combination which
impoyerishes the investment, and does noi
improve or cheaper the Insurance.
The popularity OF the plan of the Provl-
dent Savings is evidenced ly the fact t!at
within thcpast six years upwards ot215, o9O.-
000haye been written by thai, company upon
the lives Of prominent professional, in-u-
rance, and businessmen. Every body recog-
nizes the value of life insurance, and TIE
showing Of this company proves rs stabul-
ty and honest management.