New-York tribune., 1901-02-23

the honor to ashs the battle of life fairly. and
Annual Cash Values.
Another hoerality Is the annual cash value" bv
which one may, any year, demand back from the
company his contribution TO the reserve thus at
will changing the transaction from insurance TO a
savings bank deposit
The whole theory of life insurance and all it's
suranee contracts TO natural maturity Only 40
san a ~ Ien US special purpose secure that
takngs protect itself against those aucruatons OF
mortality and in general fnancia1 condiTions
which might otherwise oe destructive Of a com
PdHy > existence, and only the business .
annual cash value makes il possible 70 wreck oT
may an wipbdrsy fiGbmRaTy IN IN year It's
ives may withdraw, taking It's quickest and best
normal death oss 10 be el Wss re Ts1esS naom an a9
and poorer assets. leave IL unable TO continue
no true Hberaiity to those whom i life insurance % e
aSrtsAss 70 protect for whom IL was created and
a2ee companies canncr serve savings banks
ment in efficiency for their own special purpose
however willing they may De 20 take UP their poll
venient and safe to do So an agreement 20 do il
az any time and under any conditions adds dis
Loans Policies
Another and kindred hoerafry is loans pol
icles. by which the policyholder the privilege
TO borrow his contribution the reserve. pledg-
ing his policy collateral paying or not paying
his debt he pleases and he rarely peases TO
pay. This was adopted 20 meet the stock argument
OF the assessment companies; that should
yeaI; T5;- and & Keep The rsssrye ip ais own pocket
holder. but not 70 The family OUT OF whose policy
the loan must finally be paid No one who has
families caused by such settlements can covet the
task OF having to make them; no man who stops
~ leave such shadow his memory. Life in
sSIanse sur, IS sacriiee OF ones self for The tmpera
Loans and cash values are the sacrifice Of his
The noeraIity the policy-hoIder himself is less
than It Is made TO seem Under the usual forms
considerable sum could be borrowed until after
For Instance A man insured at 25 for $4,000
VI Ttn ,aa an annual premium Of about s215 would pay
policy would then be virtually cut in two. but he
would sill, pay his s2l5 and per cent interest in
into his own pocket and when as is often the case
r ns 81 sh s ne t gives @ Up sogs'hsr here is little
which but Tor the loan. would probably have
Present statu. Competition.
Out Of all this. the situation respects the life
insurance business-that which offered the public
In It's name. and the methods by which business is
promoted by the great majority of conpanies-has
developed into this: There Is practically no at
tempt 10 sell life insurance as such and at annual
cost y Is not offered unless men insist having
tor selling il; the companies push and pay the high
or confracI rbe e.nf Go5s f OK - t Donq
Is the forfetures which be worked into IL
lhls taxes time. 50 dividends deferred for i've
ten. or twenty years-the longer deferred the higher
Lne cOrnInlssiOn-tn order 20 secure as many for
against even wholesale frauds are practcalis aboI,
ishsd and the protection Of honest policy holders
sxpssdtent FOR public morality. The companies are.
integrity the validity OF their insurance con-
tracts. completely az the mercy OF those who for
withdraw taking with them the good lives which
give safe average mortality. and the funds which
loans on policies" which rarely paid by the
% his personal convenience as large part Of his
family family prStecsiGn s ss ne can borrow; and 70
do all these things is made mainly by rebates Of
premiums Gsrried 70 such , degree ma, 51 devices
pany 10 dispense with any legal reserve liability
ne Dr.nu nr5 near 4 sos ne enrs Ts
which can BE- extended to any number OF subse-
quent premiums when the exigencies OF competition
witch have caused II. use 70 the extent OF one
FED upon as 70 require the absorption Of more.
Where the Connections Mutual standA-
During all the long struggle out of which this
situation has developed, and amid the many
schemes devised 20 attract public attention and
favor something else than life insurance. the
attitude and position OF the Connecticut Mutual
II has held 70 the cardinal facts: Life insurance
e for ne projection OF those dependent on mans
duty Those dependents We assume 20 protect BY
our contract ~ his personal cost our duty 70 them
as certainly avsiiabe to them as possible cur duty
70 him IS 10 make IT'S cost TO him small pos
These. things are automatic; and certain definite
our policies should be framed in every detail TO
give the protertion Intended to those for whom II
= spt6uaoa IN ts fore9ur- f2Sr 81 mat Sy
those dependent l on #. - nor Of his payments BY the
policy should be the protection IL offers; the mo-
OF hts unavoidable duty by him who has ma.
gotten By educating men 70 this standard OF duty
and OF rs performance, and not by changing the
appeals 70 selfish interest first and leaves duty
take its slender chance IN "A ~ % year lottery
Annual Dividends. and Why.
The cost of the protection 70 the man paying for
n is the difference between the premium charged
on the face his policy and the surplus returned
% him. In this adjustment he pays his actual
share OF the mortality and expenses. and is credited
with his share Of any surplus interest earnings The
determined each year Each year the company
knows iust what hts risk has cost them 20 carry;
and more. In other words. as the cost OF each
policy Is annually determined. the surplus il there
Is any safely divsibe should be annually returned.
that only the actual annual cost IL annually paid
The only proper reason for deferring dividends Is
is something in the condition Of the company it's
business which renders a division highly mex
pedeut
What Deferred Dividends Conceal
Annual dividends put the management OF a com
pany 10 a constant test. Deferred dividends put
of that test 20 the end OF long period OF years
Bv annual dividends a knows all the time Just
what his insurance is costing him. With deferred
the end OF period. II he lives and holds on:
II dies before that time, II will have cost him
he lapses. IL will have him much by the
OF surplus forfeited. and also by the amount
surplus
The annual dividend is a steady and powerful
dividend gives a wide and long opportunity for the
extrayagance and consequent high cost when y