The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-02-22
INSURED FOR A MILLION.
Frank H. Peavy of Minneapolis Car
ries a Policy fOY, That Aroo,,v,+

flSS Eo11cy Tor That Amount.
Frank II. Peavy, the elevator king of
Minneapolis, has had his life insured for
Si;o0l0O0. The annual premium is s43, 800.
rms IS the largest annual premium life
insurance policy in the world 1t is the
largest premium paid upon a single life
oy any man in the world. One company
retains the whole enormous policy No
other company in the world has taken
such single risk.
Mr. Peavy IS now a man 50 years of
age. In the natural order Of events ne
should live TO be IhTee-scOre and ten II
ne reaches the Biblical limit he will have
Psl4 10 IN the insurance company 1851 $50, or
WlIilIh $5Z,-OJ OF the amount of his insur-
aEce. 1t he should overstep the limit by
one year MS premiums Will exceed the
principal by $3.50 And If he should en-
joy the blessings OF good health and
reach the century mark, he would have
paid for his policy something like 81, 1880
not improbable.
Russell Sage is more than 81 years of
age, by five months. If he mad taken out
4 inliilUn-0Ol ar lie insurance policy when
he was 90, he would by this time have
paid ior it, at he SINE premium, IN sound
figures S1,67C 0JJ.
On the other hand. the insurance COM
pany appreciates the nature OF the risk.
On one point IT has a certainty 1t can
rely upon the tact that the insured will
take the best possible care OF his health.
Mr.. Peavy enjoys life, surrounded as he is
by every luxury, and he will do every
thing in his power TO draw every year
over S43, 600 from his bank account. " hen
he took out his policy, on the 18th OF April
last, he was pronounced, after a rigid eX-
animation, physically sound. The COM
pany, therefore, has an exceedingly good
chance OF earning an average percentage
, on MS payments Tor many years
There is but one other 100000 life in
SuFance policy in eX- Stence. 1t was iSS ne
by the same company to George W. Van
deTbilt just previous to his marriage IN
1898 TO Miss Edith StUyvesant Dresser.
3 The Vanderbilt policy, however, was i'm
of companies. the insurance company re-
tanning only One-half of the total amount.
The premium on the Vanderbilt policy is
$4,000 a year. 1t differs also from the
Peavy policy inaSmuch as the payments
cease at the end of twenty years.
The Vanderbilt policy was peculiar IN
that it was not secured through a general
agent. Mr.. Vanderbilt visited the COM
pany-s office in person and paid his first
annual premium of $4,000 to the president
The company saved all agents commits
sionS on the policy
The testimony OF large insurance com
panies is to the effect that the financial
transactions involved In taking risks on
human life are every year assuming
Larger PROPORTIONS Where policies OF Sli,-
ago ii is not unusual now to write pohclss
of fifty times that amount. With the In
/ crease of their surplus the great COM
panies have increased the amounts OF
their single risks. Five years from today
/ 81, COO COO policies may have bec0me or
binary insurance transactions. Ihen5 lr
{ all probability, a S2,OOO,UJJ pOncy Will Ds
written, with 100000 as the annual pre-
MUM.