Mexico Missouri message., 1902-09-18

at age 40 this reserve rate will be
discontinued. The member ut age
10 will be required to pay 80 cents
Il month, or 5000 year as Il re-
serve rate from - to 90, inclusive.
1t will be found that all members
from 10 years of age to age 40 are
also required to pay 30 cents Il
month. This latter amount will
not be sufficient to accumulate the
required reserve fund ut age 40 on
members from 46 to 60, inclusive,
and hence the committee provided
Il fraternal rate which is to be
charged against all members up to
and including age 60, and this fra
ternal rate is to supplement the re-
serve rate of members 4G to 90,
inclusive, and also is intended
to provide Il reserve fund for all
members 20 years of age and over,
since the latter will not be required
either to pay the reserve rate or
the fraternal rate.
AS the reserve rate is for the
purpose OF accommodating Il reserve
fund to be used at and after age
10, it follows that if member
should withdraw before attaining
to age 10 he would be entitled TO
take out the amount of reserve to
the credit of his certificate, since
he would not continue with the So
ciety and hence there would be no
need for his reserve accumulation.
The committee therefore provided
that if member withdraw, the re-
serve accumulation should be re-
turned to him.
If the member remain with the
society and live beyond age 20,
then the reserve accumulation is
to be drawn upon to help pay the
cost OF his insurance.
AS the mortality rate Will be
sufficient to pay all death claims
up to age 10 it is often asked why
the reserve accumulation to the
credit of the member who dies be-
fore he reaches age 20 should not
be paid to his beneiciarles III adj
dition to the face of his certificate.
This is very natural question,
and on a superficial view 1t would
seem that if the reserve can be re-
turned to Il withdrawing member
it also could be paid over to the
beneficiaries of those who die, III
the event that the members with
draw or die prior to reaching age
20.
In the case of the member who
withdraws, he relieves the society
of any liability, his certificate be-
ing annulled wheu he quits the or
der.
In the case of the member who
dies, his death at once brings a La
bility upon the society and it is
necessary to pay the face of his
certificate.
In the case of the member who
withdraws, he pays to the mortal
ity fund and to the general fund
but never receives any benefit UNI
der his certificate from the society.
In the ease of the member who
dies, he also pays to the mortality
fund and the general fund and his
bencficiaries receive il benefit from
the society.
In the case Of the member who
withdraws, since he receives on
benefit under the provisions of his
certificate and since he has con-
tributed his share to mortality and
general funds, it is nothing but
equity to return to him his reserve
accumulation.
In the ease of the member who
dies, his beneficiarics having re-
ceived the full benefit promised in
the certificate which has been
mainly contributed by the surviv-
ing members, it is nothing but
Justice and equity to these surviv-
ors that they should receive some
benefit from the deceased member
reserve contributions.
If it were not so calculated that
the reserve accumulation Of de
ceased members went to the credit
of surviving members, then it
would be necessary to have Il much
higher reserve rate. Thus, at age
20, the annual reserve rate would
he %;l0.44 instead of $l,32, or
81 go month instead of II cents
a month. 1t will be seen, there
fore, that while the members who
die leave their reserve accumula-
ton for the benefit of surviving
members, yet they have had full
compensation by the fact of SO
great reduction in the rate. Few
members could afford to pay
Il reserve rate OF $l9.44 year ut
age 20 in addition to the mortality
rate, aud, therefore, the device
was conceived whereby he could
nav 81 b a wear and in the event