Telegram-herald., 1891-12-01
TYPICAL LIFE INSURANCE.
Why the Mutual Reserve Fund Life As
ISOLATION Claims Preference.

ISOLATION Claims Preference.
The present age is the epoch of life
insurance. All the prejudices of the
past have been swept away, and now 1t
is regai ded to be as much y mans duty
to provide for his family fund that
shall he available for their use when he
is no longer with them to provide for
their support. as It is to have q house
to shelter them and table for their
every day necessities.
There are many ideas about insur.
ance. but when oil are sifted to the bot
tom few facts remain a. the founda.
ton of all. This is one of them: that
the insured are the insurers, for no
matter how much money is required to
pay losses or expenses. it must all come
from those who are insured. Another
fact is thIs-and it follows as q cOrol-
larry upon the first proposition, that the
system of insurance which makes the
cost the least, while it at the same
time furnishes undoubted security, is
the nearest 10 perfection in insurance.
These are the basal facts upon which
all insurance 10 built. But how can the
minimum Of expense and of mortuary
cost be known? BY experience. There
ls. law IN operation which requires in
surance companies 10 make detailed re-
ports OF their business, and from these
itis learned what everything in connec-
.tlpn with life insurance costs; from
these reports 1t 10 known that the NOR
tuary cost-that is, the amount Of
money required to pay the death claims
amounts to $l2.10 per $1,000 per an
mum for all ages. There are other ex-
penses of course, but the system which
adds the least to this rnortuary item
and successfully conducts It's busi-
ness II the nearest perfect. Tho aver
age rate OF premium Of the Old system
insurance companies, for all ages, is
S3e.44 per 81 900. The discrepancy and
the fact that these companies were
heaping up surplus funds TO the extent
of many millions, seemed to prove to
the general mind that there was an ex
orbitant over charge for insurance, and
the beneficiary orders, such as the
United Workmen, G. M. B. A., and
kindred societies sprung up with rapid.
ity and acquired very numerous
membership. There were faults in
them, however. Certain contingencies
had not been provided against and they
found that they had erred in the oppo-
site direction. Nowadays certain self
evident laws are taken into account,
and payments are gra led according to
tie expectancy of life.
These remarks bring the subject down
to the real question, aid that IL the in
sursnce company which, conducted as
an insurance company and not as q
tociety or order, still furnishes the
same system OF insurance put with am.
pie provisions made against the evil
day. In another part of the times this
evening will be found the statement of
the Mutual Reserve Fund Life associa-
ton and aH account Of what il has
done during the past ninety days. II
is remarkable showing, and is is
doubtful whether any company can
equal il. 1t 10 proved that the claims
for insurance can be promptly met, and
also that = fund can be accumulated
which will provide against any contin-
gency--aIl this, too, with tie premiums
about half what 10 charged Nv the old
system companies. The premiums in
the Mutual Reserve, allow tl4 TO 81 900
for mortusry ciaims, q little excess go
At TO Be on the safe side; g per 81 900
for expenses, and no more; and fur
thef charge Of something over t4 for
the reserve. The total makes the pre.
miums about half what the Old syssem
companies charge; the record OF the
company seems 20 prove that il - am.
pie to meet all demands Daily
iimea