New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-14

pay for his Insurance only what II costs or desirc -
knowing what IL Is costing year by year. = y
But, granting mans willingness TO speculate v,s
family protection for the sake Of result which, IL rs.
zed Is only fo2 cent annual Interest his psymcn
WHAT ARE THE PROBABILITIES OF SUCCESS,
We can Judge only by the past. Two Of these GONNA
MES have been engaged almost exclusively spscs
ative lie insurance for twenty already For nearly
ell that time they forfeited all the reserves N lapsise
policies a. well all the surplus But they settling
now the surplus policies which have received or are
supposed TO have received tho forfetares Of en,.
reserves and surplus from spes for the last twenty yan
and surplus being paid Il only about 80 cent
OF the estimates OF surplus on which these policies were
sold twenty years Either the fosfeituPcs teen
much estimated. else the Aeesaas
has overcome the speculation one or the other
But these companies now profess 10 forfeit On policfs
now being written only oDehrd Of the inSs
OF the whole formerly. Yet they are estimating"
that the results OF policies twenty hence WHEN
can share In forfeiture Of only onethird viii 10
as arc the present results Of the policies which are sharing
n the forfeit Of the whole reserve for the last twenty
years They cstImote that part will produce as much
the whole INC Old "Fu Tontine'' poueies-in which ali
rescryes az well a. all surplus on iapses were fof
feted-ore yielding only 30 per cent, or less. Of ne
ESTIMATED" surplus. And ihis 30 per cent result on Ful
outnes IA now used cstimae' OF the probable
suit OF the semi u forfeit all the
Mus but only third lapsed reserves Dor all e,s
investment policies "bonds," consos" or Whatever eiss
they may be called merely varieties Of Tonane or SEMI
Tontine.
How Semi Tontne is expected 10 accomplish az much -
Fun Tontino has never explained The expenses are
tncreasnc the forfsures hardly be expected 70 bs
greater ana much less proportion OF them goes 70 me
noo and certain MY the rate interest Is not Dkey In
crease IN the next twenty years.
The true questions would seem 70 be this ~ the oa
puI ontne estimates based full forfeitures, have re
ceiced only oac-half expected surplus why NOT an
equal srinkage 10 expected In the results Of present.
..as,,macsn or illustrations" which Themselves the
d,sappo,nne results the old Full Tohnes and which
must be zed at ALL from only partial Instead 81 fun
forfeitures7
How can porti, fofelturss produce large surplus
as full forfeituresf
And u IL foreitres alone that can policies
An investment those who don't happen 70 forfeit Tor ne
expense account kills the interest account.
Or apply the test Of history this policy
The old Full Tontne estimate that the entire cash
value at the end of twenty would be s23 Goa
Mus over the face Of the policy Of si3oO But the actual
surplus settlement sight sif no further shrnkage taxes
Mace such as has constantly going on-s7O Instead
OF the sl3 500 prom 10 the hope Ana nov The s'O
result OF sl3 500 Full Tontne estimate Is used SeH
Tonne estimate for twenty years hence II IL has a. goo4
luck as its predecessor It will settle az about $3.50 In
stead OF 81 o0O making total settlement OF ae policy
$4,000 instead OF sl $50 this Is less than ga cens
on the premiums paid In. and 70 attain even this the COM
psnies depand foretures equal 10 22 Der Gems
compound interest the premiums paid
Is that speculation worth hazardng all. or any part
Of what pays for insurance and making his 9miy
hazard losing it all!
JACOB l. GREENE. President.
HARTFORD Jan. IL, 1891.
THE CONNECTICUT MUTUAL LIFE ms co.