St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-01-05
THE LIFE INSURANCE IDEA.

Usually when the term Insurance" is
seen in daily paper it refers to fire
Indemnity. This is almost invariably
the rule if the phrase occurs in a head
line, or PREDATORY matter, for ''insur-
ance" in the general mind seems to be
mainly associated with the idea of rec
ompense from loss by fire.
This fact is brought strongly to mind
i'll connection with recent announce
ments that several great Insurance
companies are about to voluntarily re-
tire from the field on account of their
heavy losses and the lack of profit in
the business" also that .'Some of the
Dig European companies are coDtem-
pl ating the purchase of American COM
panies which have been heavy losers of
late:" also that 1.-The insurance COM
panles are about t raise their
rates all round, bee ause the business is
SO unprofitable;" and, finally. that
hundreds of Insurance policies have
recently been issued not worth the pa
per they are written upon"
A further reading of all these articles
shows, OF course, that fire insurance
only is referred to. But the statements
give good occasion for the presentation
of few important elementary facts.
First-No regular American life in
surance company is for sale. They are
all too prosperous to be in the market.
were such thing possible, which it
isn't, for they belong TO the policy hold
erS and cannot be sold.
Second-They are too big to be pur-
chased, even by British wealth. The
largest of them are ahead of any finan-
cIal Institution on the face of the globe:
the smallest have greater wealth than
most foreign banking houses.
Third-FOreign fire insurance COM
panieS do very heavy business in the
United States, but no foreign life COM
panies have ever been able to do enough
here to pay for keeping offices open.
Several of our life companies. on the
other hand. have fine business in
Europe, Asia, Mexico, South America,
Australia, etc.
Fourth-Life companies are never
going to increase the cost of Insurance.
They will never ''raiSe the rates." be-
cause the price is mathematical GER
tainty in every mans case, practically
the same in all safe companies the
world over. 1t may be and often is re-
duced III cost by careful management,
but can never be more than agreed
upon; never increased
Fifth-A life and fire insurance COM
pany are utterly unlike, and have 10
more i'll common than banking and the
dry goods business. The one receives
premiums, in return for which it agrees
to pay really indefinite amount in case
of loss by fire to property which prob
ably wont burn. The other receives
premiums which it is obliged to return
minus expenses and plus intereSt-to
the policy holder himself. or to his des-
ignated beneficiary, and, as the man
mast either live or die, so the company
in time has got to pay the money.
SiXth-t1re insurance is conducted
for profit, if any accrues, for the stock
holders. Life insurance is mainly con-
Quoted for profit and protection to policy
holders. This is in no way a reflection
upon the fire insuran ce idea, which is
legitimate, honorable, and of vast ben
eft. But it is as much inferior to life
insurance as human possessions are in
feriOr to human existence. Besides, it
is now a smaller financial interest,
American life insurance leading it i'll
assets and in payments to policy holders
every year.