Omaha daily bee., 1891-02-08

| death claim element but for fair com pa ri
Emergen- Gross
Age Gasav Hsmsn Essnt EhsnSass Eyesnt n%na mSm pTs
ss.::::::::. ss:::::: s:Gi So tSS tS ~ ~ Is ls5; i
%. o. '.."s,s5 4oS 4oS s.dd33 l1s.SS
| 45........10.55 400 6.30 70 ~
50.........l2.W 400 7.93 "A n
SS.M.ss S5...a.ss tSS tSS 1Sss lS.ss &. q! !!
Here the reader will notice: 1. That both
tables provide for the same amount at same
| age, for mortality element, hence the natural
from the insured for paying death claims as
does the level or old line companies indeed
the mortality element in both eases is the
natural premium, and any amount charged
| in excess of the natural premium must have
IN view some other factor or element t.
In, the first table above given, it
| will be observed that at age 25 the
| level pIeminm companies add for expense
| 60 S22 lS Are not such dlscriminations unrea-
sonable and unwarranted, and II practiced by
any merchant or firm would be termed dis
honest.
DOES IT COST MORE TO WRITE
| policies for men at age ~ than age %, or at
! age 90 than at age 4Ol Certainly not. Yet the
| level premium system charges the man at
f5 the n Sa per per aSn S
% and the man at age go has to contribute
Ss Is per each $1,000, while the man at age 30
gets Off by paying only s.49 Contrast this
feature with the same efement t In natural pre-
| MUM companies The latter charge the same
per psrd eaeh d SSC at al ages VIZ; % per thou
by experience that $40 per Thousand is suili-
clent to defray all legitimate current expens-
es and that it costs no more to transact bust
ness Tor man at age 10 than 1T does for n ma
age 25.
Now ms to the reserve orcmergency element
1t will be not iced that at ali ages. the level
premium or old line companies have their in
sured contribute to that element more than
twice the amount that the natural premium
companies require their policy holders to pay.
ALI OF which Is gross injustice, because that
such unnecessary exactions a re not warrant
cd and experience has proven the fallacy of
the system and yet. it so far mas not been rem
edied by those level premium or old line com
pdnies The natural premium com panies find
that the loading added to the tural premi-
um for expense and emergency element, are
to their policy holders, in the way of
dividends, cash surrender values, continua-
tion OF policies under certain conditions with
out further payment. and many other admir-
able features. Natural premium companies
hold the respective amounts contributed by
their policy holders as sacred for the lndivid-
uals contributing same and at no time Is IL
contiscated to poster!ty to pass into the hands
OF strangers.
But MR.. GREENE
in his article refers to the cost Of $40 900 policy
at the age OF thirty In on e of those level
premium companies, as bel ny $4,000 per
nur, for 20 years and should the insured agree
in his application to leave ali his savings and
interest earnings, during the ~ year period
such Companies nns haye est%ated that tnas
GO years. the policy mi ght be worth s7O6O.
whi ch would df realized) be &c uivalent 10 com
cent. MIR. Greene certainly deserves great
credit for his honesty, for while president
Of of those old line or level premium COM
panes and one too. which has, and does issue
such policies and contracts as above stated,
yet he frankly and manly. and over his own
earnings have been made as those estima ated,
and that In the nature Of things, such,
y N tllr
But suppose Mr. Greene's own words be al
lowed to speak for themselves, he asks in his
level or old line com panies writing such in
vestment or speculative policies
"How MUCH CAN THEY Dop
These ,compapes under present conditions
expense account or to earn more than
per cent interest on their assets for the
certain to earn that much, and taking out 20
per cent of premiums and of interest for eX-
penses, and providing for expected losses, the
would be Just SiO,sl7 instead OF the estima ted
sl7060. shr rinkage of I.2i3. a result not equal
to the premiums compounded at per cent. In
what sense can this be called II profitable in
yestment for ones self How can any purely
financial operati ion-one that is not manu-
featuring, mining or otherwise productive
business adventure-that has to bear such an
expense account, be considered AS "a profitable
shrinkage OF 1928, to realize which would re-
quire them not only to do business without
any expense at all, Dut alSOtO earn Tor twenty
years a greater rate or interest than they
have any reasonable hope of doing?
But another unfortunate and unl ust fea-
ture OF such planof insurance Is the forfeiture
of all earnings and savings to the estate of
the insured should he die prior to the invest
be 1t known tn at under such a form OF policy,
should the insured die prior to the end of
the Investment period, and thereby his policy
become a claim. the level premium or old line
companies would only pay its face valne, and
all the savings and earnings belonging to tine
policy OF the deceased is confscated, no mat
ter IL such savings have accum ulated up and
Into the thousands OF dollars.
BUT SUPPOSE THE MAN,
age thirty, has used his 849j differently
premium insurance company, and continued
to pay same to such "A company for twenty
years he would be insured all the time for
$1,000. Then assume that the man
per annum into an Investment company. Viz:
1881 he could get guaranteed certificate that
his 1881 pai annually for 20 years would he
led e at per cent intesess ss Which u
%Sq,a &t the eu Gt IN Years n tba to-
the Investment company quite likely to in
| crease the sl2,OO66s at least $4,000 or $4,000
80 per cent of past experience. Should any
call and interview the writer for further in
formation and proofs
THEREFORE, 1T is APPARENT
that man Is much better or to buy his life
insurance pure and straight and avoid all
IL he wishes endOw ann uities or invest
ment features, put his money into substantial
corporations thaying and owning real estate
as the basis OF securityland org anized for such
Investments.
Another contrast between the two methods
name Is, that assume the man dies having paid
in sixteen annual premiums to the level or old
line companies there would be paid 60 his es-
tate simply 10000; but IL he had divided his
sD6 per annum as above recommended, then
the natural premium company would pay To
his estate sln,OJ0 plus the percentage OF the
n a. N Is M
the time OF his death, aud the investment
company would pay to his estate sixteen
times sJil com pounded AT per cent interest,
which would equal S0,001 80, so II will be seen
how much better off n man Is IL he divides his
money as herein indicated, for at the end of
the sixteenth annual payment should he die
having invested in the level or old line COM
panles his estate would get simply $4,000,
while by dividing his annual contribution be-
tween the Natural Premium com
pany and the Investment company hls estate
would receive an absolute ti9,0J..5O plus his
percnnlage In the emergennY IN nd 10 his crnllL