The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-10-23
NEW INSURANCE IDEAS.
YOU CAN TAKE ORANGES ON DY-
ING or LIVING, AS YOU CEOOsB.

! Prolonged
From The NetC York sun.
off you pay for something that doesn't
arrive until you are dead, you are not in it. d"
The actuary Of one of the largest insur-
ance companies in the world gave the above
as the reason why all OF the big companies
have been compelled to adopt all the new
tangled modes of insurance that are now
being advertised. There are "consols" and
bonds" and ''annuities" and deferred an
nuities" and ''survivorship annuities," and.
in fact, almost any kind Of a game the
speculative or provident mind cares to play.
The old-fashloned insurance, in which you
paid in as long as you lived and some one
else cashed the ticket, has become 50 modi-
fed here and elaborated there that it is no
longer recognizable.
The plan that has taught the insurance
folk a big lesson IN human nature is that
known as the survivorship annuity. That
game is most popular with husbands who
want to leave something for their wives,
and want 1t to go to them in such shape
that cannot be got away with IL lump
sum by some other fellow who may come
around to console the widows sorrow. It rs
just little amazing how many men conf
IDENTIFY expect TO have their widows woOed
and won, and how macy think the man
who is TO do the second wooing and winning
will make away with whatever capital may
be attached to the widow. OF course,
thess sentimental considerations are backed
up by practical financial reasons. For
instance, a man may fad shat be can spare
$4,000 from his business. Perhaps he has
got along far enough IN the struggle Of life
to think that that 10 as much as, il not
than his WOuI1 nat after fha
executors of his estate had finished with it,
II he should leave that SO, 600 to mis- widow,
she would be lucky If she could invest it
and got per cent. net for it. Then that
other man might come along and get away
with it. so ne invests it in q survivorship
annuity, and his widow would get, say, IL
she we're ABOUT so years Of age, II per cent.
This large interest is possible because there
is a percentage in the game which wor ks
greatly TO the profit of the
insurance companies. Sometimes the
wife dies before the husband, and the
$4,000 is pocketed by the company
with nothing TO pay out. The husbands
grief may be embittered by the thought that
he could have kept the $4,000 in his bust
ness, but that is the way the game is made
The wheel goes round, and sometimes the
red turns up although you have bet on the
black.
The strsightout annuity, which so often
figures in pretty little tales Of English life,
where the adventurous brother goes to
America with nothing in his pocket because
he has invested his little all in an annuity for
his fearful but pretty sister who tnarrIes
nice young man in the last paragraph, that
kind Of annuity is also offered TO an eager
American people. The people are eager. but
not for that kind. Sometimes a husband, or
father. or an uncle, buys an annuity for his
wife or daughter or nephew, but the plan
hng NOT kaA
popularity. Sometimes, too, an elderly
lady or a man with that tired feeling gets a
small fortune left him and invests II in an
annuity. The interest is always higher than
can he earned by stocks or bonds, for the
sufficient reason that the principal never
has to be paid. When the receiver of the
annuity dies the sum paid for IL belongs to
the company which pays the annuity. This
interest varies from about Z to IS per cent,
That is all determined by the age, condition
| of health, and mode of life Of the applicant,
| just as the rate Of premium is determined in
| the case of IN applicant for an ordinary life
| insurance policy. There is vast differ
snce, however, in the point Of view of the
| actuary in considering these two cases.
| When a man takes out an ordinary life
| policy the company is anxious Tor him to
| live, the longer the better. When he buvs
| an annuity, the news Of his death is received
| with appropriate JOY, the quicker the bet
| ter. With the frie ds and relatives Of the
holders Of ordinary policies and annuties
| the reverse Is the case.
In the first case, those who are to be bene-
| fitted by the insurance, when it is paid, re-
ceive the news of his sudden or untimely
taxing of with grief, of course, but grief
sottened by the thought that his foresight
aud prudence will enable them at least &c
face the other sorrows of life fortified by
such sustaining aids as filthy luoer, unfortu.
| oAalrr al I.
case, that of man drawing an annuity
his friends, relatives, dependents, all realize
that with his death such bounty or comfort
that they may derive from his income cease.
| Now, here comes a curious fact in this
connection. The man with an annuity lives
longer than the man holding a life lnsur-
anoe policy. There is no doubt about that
The actuaries have reduced the whole thin a
to rows of figures, which tell the strang
tale. Why? Well, one reason has been
limited at already. 1t is not a very pleasant
phase of the que ton, but it Ia such a hard.
solid fact that 1t has entered into the act
uaries' calculations on the averages OF
longevity. A man with an annuity is
more pleasantly associated, carefully at.
tended, cheerfully surrounded, cautiously
watched than he would be If he were {
policy holder.
A French story writer could work up a
highly emotional situation on some suct
case as this:
"Alphouse entered his uncIe's study with
gloomy forebodings.
His struggle for life had come"
He could not enter the Jockey Club AGAR
unless prepared to pay that debt of honor
TO the marquis.
mol Death rather.
And that very morning, as she had
kissed him, Celeste had asked for 500 francs.
How warm Celeste's lips we're
Would his uncle acede to his demand tol
help, or coldly repulse him, as he so otter
had of late3
His uncle did not note his arrival
'He was asleep in his chair.
what was that stirring his uncle's ven
cradle gray locks'
ut was the wind.
"There was death in that chill blast.
"Alphonse spraug to close the open win.
dow. AS his fingers touched the window ht
hesitated.
His uncle's life was insured for 500. OO(
francs.
ne was his uncle's sole heir.
las his hands paused on the open win
dow he thought Of the marquis cruel eyes
"Of Celeste's warm lips
Now, there you are. How different the
situation would be if the uncle Of Alphonse
was in receipt of a large annuity anu had
no insurance on his lifei
There Is another thing that helps TO pro.
long the life Of the man with an annuity.
He Is no longer in the struggle for life His
income is assured, unless the company sus
! 1. I'll.