Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1897-10-09
w ~ IGag z INaaI

cent of premium income devoted to
mortality, and about 20 per cent of
total and rs per cent of premium in
come devoted to actual expense man
agement, and about a per cent of
total and per cent of premium in
come to dividends.
Summed up, find that these fixed
charges, which certainly apply to
every class of policy issued by the
company, use 40 per cent of the total
and 90 per cent of the premium in
come, and | am puzzled to know
where they got 10 per cent to give
Sam for reserve. However, as wish
to compare the result of this policy
with actual experience results of
other kinds of insurance, l am will
ing to call it actual experience.
While l have no desire to adver-
tise any particular building and loan
company or fraternal insurance or
der, | happen only to be familiar
with the practical working results
of one building and loan association
and two fraternals. With actual
results from these, which are in my
possession, proceed to compare this
policy, fully believing that other
building and loan companies and fra
ternal orders can show an equal,
possibly a better, record.
Actual experience results of the
building and loan association show
that SIS invested in prepaid stock
will in five years produce 500.
Rev. Sam Jones paid as per circu-
lar $2o5 annual premium, equal to S
All shares building prepaid stock.
Figured to a ten-year period, this
premium invested in prepaid stock
would pay Sam $7,2I6.I8; the Mutual
Life would pay him S2,85665; bal
ance, $4,36o53.
But the Mutual Life tells me Sam
has been insured for $4,000 all these
ten years.
True, and now let US insure him.
None of the fraternal orders will
carry him for more than $4,000, so l
shall have to put him in two, which
makes it little expensive. We will
put him in two for $4,000 and will
have to make him pay Lodge dues in
two Lodges. Our actual experience
results show that we can carry
$4,000 insurance for Sam for S45 per
year, leaving him out of the Mutual
Life's S2o5 annual premium $3.50 per
year to invest in prepaid stock. At
end of ten years this is worth
S6,oII.4o. The Mutual Life pays him
S2,855.65; but we without talk or
b1uster, pay him the same and then
make him a present of S3I55.75.
But not to bother about small items
like this, which have so many argu-
ments both ways, drawn from ex-
perience results of different insur-
ance companies and orders, we will
double our cost for contingencies,
and then, because we are not sure
the Mutual Life will be satisfied, we
will add SIS per year for incidentals,
such as charitable work in our
Lodges, some little of which we do
try to do, and which / never saw any
record of the Mutual Life attempt
ing, but have no doubt Sam Jones
would do if able. We will make
Sam pay us SOS per year, and find
that he has yet from the equitable
level premium of the Mutual Life a
small item of $500 per year to invest
in prepaid stock. This we invest for
him, and at the end of ten years find
to Sans credit $4332. We deduct
the cash value of this policy and,
notwithstanding we have doubled
our cost and given Jones show to
be charitable or to pay his fair share
for church work we make him lit
tie present of $I,476.35; and right
here it dawns upon me that we for
got to charge him $I.8o per $1,000 per
year.
! IcoNTINUED NEXT WEEK.
@-4