The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-04-13
nRa sTANYoRp.s IEgURANcE
she lU Ola. but 'hs ComPapy Not LIKELY I
Lose BY the 1nVssinasRt.

4
Lose BY the 1nVssImsHt.
The issuing OF policy OF a million
dollars On the life OF Mrs. Jane STAN
ford, Of san Francisco. BY one New
York company has caused much cum
ment among those unleaualnted wiki
the business Of life Insurance eompaE-
les. says the New York Herald. To the
initiated It appears that the company
Il taking n tremendous risk In making
4 policy for such an amount on the lie
* woman who has parsed the three
score and ten mark. yet u Is not such
4 risky venture after all
II IS the largest life Insurance yolicy
ever written by one company. as has
been tolh IN the Herald II should be
remembered. however. that this COM
plny viii undoubtedly reinsuTe the
risk ="
Mrs Jane stanford Is the widow Of
Leland stanford. the railroad million
aire she IL seventY-two years old. and
according to the expectation OF life" II
viii be seven years and some months
before she may be expected 10 fall .
victim 10 the grim reaper"
II was with the intention Of proviG.
ing funds for the Leland Stanford Uni
versity that Mrs. stanford hal her lie
Insured Under the terms OF the policy
the company agrees 60 pay $1,000. 600 to
tie university IL Mrs Stamford dies
within ten years. II she lives for more
than ten years the company will pay
s.. OO0 900 on her death. or course. thc
premium on such an amount ~ insue-
ance Is enormous Mrs Stanford Sill
have TO pay 10 the company $4,000
annually
Now. as to the risk the company Il
assuming. II is not generally understood
outside OF insurance circles that COM
pinies who issue policies for unusual
amounts Immediately Teinsure In two or
three or perhaps a dozen other cpmpan-
les for maybe the entire sum Therefore,
II Mrs Stanford should die 4 month az
ter having her NE insured FOR million
dollars. the loss to the company issuing
the policy would probably not be great
Assuming. however, chat IN. company
lid not reinsure. but took the entire risk
what would be the chances for pr0ht
or loss? In Issuing policies every life
insurance company Is COVER ned by the
American Table OF Mortality, which
gives the expectation OF lie" The
expectation Of life" Is the average nun
Der OF years which = large number OF
persons or any given age have yet q
i've; that Is. m. sum Of the years which
All maV De expected % live, divided by
the number Of persons
Take 10000 children. each ten yenrs
old to-day. for Instance. SlXty-two
wears from nOW. when the survivors viii
have reached the age Of Mrs. stanford
there will BE- oaly 23,T2p alive. according
70 the table. The deaths each year viii
average 2.ts7. and the dsat1 rate Per
thousand WIN have been I31S yer cent.
The survivors "eEpectatioS ot lt-'
then will be 80 per cent
Therefore. the expectation " he o.
Mrs stanford. Insured for 100000 al
an annual premium Of $4,000, j. about
seven wears and A halt II she paid the
premiums for Only nve years, Feckot.-
ms Interest at S per cent, compounded
the insurance company would nave lts
million dollar policy covered and have
something Ike 81. 600 20 the GOoc. And
she company may invest the money al
much better interest. II Mr.. Stanford
lives seven years. she viii nave pald IA
TO the company l.ls1.O0S.
II the company invested $4,000
year for seven years At per cent com :
-ound interest the total would amount
10 more than 81. SO0. 900. Il viii readily
b. seen that the company would niaks
a handsome prodt II Ars. Stanford NV
"a Fuore than the ten years,sysr though
they paid the 5000, 900. as stipulated IN
the policy.
Taking everything iu;O consideration
rot forgetting that TIE company mas
probably reIusupsd the risk--ir e very
much on the safe side. and the prnspee-
tive gain Is worth the risk.
Mrs Stanford has made many sacTi-
ac.ss FOR the university. While It's funds
we're tted up Ia the cau--s FOR mere than
a year she paid the running EXPENSE
gu. OF her private funds.