Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1897-10-16
A PITHY ANALYSIS.
IcoxrixuED FROM LAST wErK.l

icoSTiEUED FROM LAST wEEK.l
Let no one now fall into the error
of thinking we have done this for
nothing, or because Sam was Rev
For insurance we have charged him
dues in two Lodges sI2 per year, out
OF which we have paid all the ex-
penses, not only for our Lodges, but
of the insurance business as well,
and something in regard to this ex-
pense element occurs to me right
here; SI2 is only about IL per cent of
our premium of S9s per year, instead
of as per cent of the Mutual Life pre-
MUM of S295 per year. Even out of
the SI2 per year we have taken out
two-thirds for Lodge expenses, so
that actual expense management
figures with us $500 per year, and
with the Mutual Life IS per cent of
S29s equals S74.
The Mutual Life is not happy yet,
and says: But we will give Sam a
paid-up policy for $4,000 Yes, but if
they do, they keep his S2,855.6s
Sam, at age 4o, which he has reached
when our figures terminate, has ex-
pectation of life 81 years. He may
not be able to stick it out that long
and keep his wife out of her money,
but the average Sam of the Mutual
Lite's 10000 will live that long and
enable them to pay the $4,000 without
troubling this little S27,ooo,ooo sur
plus. In fact, as they have gotten
this surplus by constantly increas-
ing accumuiations tor ffty-three
years, we will venture the suppo-
sition that ii will be larger at the
end of twenty-one years.
We, instead of giving him a paid
up policy for $4,000 good in twenty
one years ION an average), pay him
S4332. The average Sam proceeds to
put into prepaid stock, and at the
end of twenty-one years finds him.
self with the fairly comfortable sum
of S47,272.
So far l have been trying to find
the true inwardness' of the Matual
Lite's claim of the right kind OF in
surance,' but there is a little point
nearly always overlooked in argu-
ments of this kind. At the end of
ten years Sam has reached 49 years
of age. We have found what each
will do for him If he quits; but sup
pose Sam, who is now along in
years, and being a Rev has prob
ably lived pretty close up to what
income he has been able to make over
S2os per year, which his good bus
mess sense has led him to put into
life insurance, concludes that it is
time to get home and begin to grow
n wine and fig tree of his own. The
record shows that he is a provident
man--not inclined to run in debt.
Past experience has taught him the
value of life insurance, and he feels
that he still ought to carry about
$4,000. He takes from us S4,332, or
from the Mutual Life S2,8556s; i'll
either case, as he is not an extrava-
giant man, sufficient to get him a
home that will answer his purpose.
The Mutual Life now charges him
S,S6.so annual premium on the same
class Of policy. We, however, will
carry his insurance at the same rate
of assessment as before and only
charge him the same expense fund
dues of SI2 per year in two Lodges.
Our Orders have grown older, and
the Mutual Life says our cost will
increase with age; perhaps instead
of twelve level assessments we will
have twenty-four per year, which
represents far higher death rate
than the A. Q. U. w. have after
twenty-eight years, or the Mutual
Life had after thirty years. Under
this state of affairs his $4,000 will
cost with us-twenty-four assess
ments at S2.5o equals 500. and SI2
Lodge dues; total, S72 per year. This
leaves Sam h little pocket money for
the Mife and kids of S3I4.5o per year.
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