New-York tribune., 1902-02-03
The True Aim.

The True Aim.
For consider: Life insurance contemplates and
is adjusted just end: the immediate and
sufficient protection of those dependent ones who
are either at all or nsuficienty provided for
in case their breadwinner dies, and TOT wh9n ne
make other provision at once. and can
make no other at all except by the long process
banks or by investment in safe securities bearing
interest at a moderate rate all subject TO inter
and to be brought to an end at any moment by his
Life insurance changes all this: It. and it alone
among human schemes. can provide at oEce, III
accumulat ted only in a long lifetime. which might
never have been otherwise accumulated at all
might haEf m t BEEN stORPed % m at qny time do this
Is the one thing which no other device of man
can do. Every other thing that be done for
done. and best done, by other financiai schemes
and the institutions designed and htted to their
can do. Therefore must he on whose life others
protection.
The Limitations of Life Insurance.
In dealing with life insurance as one of the
most useful and influential factors in the develop
ment of our soco-economic life, it is of the high
use and value its true aim and single function
but also 10 recognize the limitations of that funC-
itself. and by certain incidents inseparable from
the conduct of the business a business; which
management necessarily higher than that OF any
other class of institutions used for the care and
Investment OF money.
Unfortunately. the business is and apparently
can be done only by solicitation, which is costly;
and II demands the employment OF large office
and medical stats and field organizations.
While. then, the service life insurance renders
is unique its cost, even when kept rigtdly down
a minimum. is unique compared with that OF
savings banks or the investment Of money in ordi-
nary safe ways.
But because mans duty to protect his family
is Imperative. and because he cannot otherwise
rightly and fully discharge It, he is justified In in
mourning
the company to do some other and different thing
MfSP at far ess Sss expense 1s o' SOME 0's'
Moreover, a life insurance company cannot un-
dertake the obligations and operations peculiar to
other institutions without using methods and sub
jecting it's business to contingencies which contra
vene and imperil the very structure imposed upon
life insurance by Its own particular purpose
When life insurance company, in order TO at
tract business. undertakes to treat its reserves,
created and held for the ultimate payment OF all
its insurance contracts. If they were deposits In
of the depOstor. and so TO be looked upon by him
a bond comparable in cost and outcome with a
real bond Investment 1t not only exposes It's whoIe
the to its integrity. but: II IL
ment payments for the purchase of bonds it
has to charge these deposits or instalments with
but with commissions to agents and other expenses
centage on each 500 deposited or paid in. varying
according TO the company economy or want OF II
And this stands in contrast with deposits in savings
banks without any commissions at all and but
slight comparative cost of management, and with
real investments in mOrtSaGes, bonds, or good
stocks with no expense at all
Present Competition.
Obviously one cannot afford to employ a life In
company. with its necessarily high eX-
pense rate 10 act as his savings bank. to
gard it's policies however phrased. real invest
ment bonds. nor to have his life insurance, on
which his family depends, exposed TO the constant
OF the necessary. reserves as if they were really
mere deposits in bank
Yetf Z IS iSPIv these
is most sought to-day, and the companies seeking
It most eagerly are those that have the heaviest
expense rate and the business Is secured in part
concealed from the policy holder for the present
With Wy 5h eHseStation also that meantime many
forfeiures will occur for the benefit OF those who
through conceaiment Of its real cost and of the
fact that for the same money one pays M for SO Do
and the companies turn themselves practically into
come which would destroy them as insurance
companies.
Lesson of Experience.
And yet one of the most striking features OF the
experience of the companies competing by these
methods for great growth for twenty-five years
and more is the fact that Notwithstanding the
cuTred and upon which they have depended for
unusual profits those who Outlived and outstayed
so oe Frea that he DIVIDENDS Sv no
approxmated the estimates upon which the busi-
ness was secured
The sound Position.
1t is because there is but just the one thing that
life insurance do that other institution car
do and because. at best its necessary cost is rea-
lively high and because any other financial opera
ton be better and more cheapIy done by some
other institution organized for its specific pur-
pose. and because life insurance company cannot
do anything that other institutions specifically
dertake except at diSproportionate and excessive
cost. and yet more, because any other thing which
other institutions undertake is, in specific aim.
method. and incident, in conflict with and more
or less destructive OF the proper aims methods. and
is because OF these things The Connecticut Mutual
petition to deck out life insurance in the garb OF
something else, has adhered to the true and par
method. and has thereby accomplished it's intended
result OF perfect protection at low in an in
that IL still so bases and frames and administers
its give to its benehciares pro-
payer OF the premiums according to his own proper
risk from whatever cause protecting him against
anything from him by any device for the benefit
of some one else.
administered, that your company has achieved that
great strength steady prosperity; and that steady
IL serve its members to their unique ADVANTAGE.
and and II Il s Is ~ m fo5 10 81 me 5 same sure conditions
1t confidently hopes to render future service of
equal benehcence TO dependent families. and OF
equal value TO those whose duty II is TO proteCt
them.
The Operations the Year
In its main results and in the conditions affecting
the future with which 1t Closes the wear 1871 ne
a satisfactory one. The details are given so fully
elsewhere that shall here deal only with ,bs
general features of the years expertence
The new business written was larger in amount
than IN the previous year: the number Of iapses
and other terminations was considerably smaller.
the increase in the amount OF business in forrs va