The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1903-02-02
fT-S8VGlth Annual Report
OF Tho
CONNECTICUT
Mutual Life Insurance
Company.
CONNECTICUT
Company.
To the Members:

To the Members:
For many years the operations of the
Connecticut Mutual have been assum-
ing a more and more distinctive and
peculiar interest for it's members, for
the American public, and for the whole
insurance world: and for several re-
markable reasons worth noting.
For many years the great majority of
companies have been gradually swerv-
ing from the lines of practice which
are native and inherent in life insur-
ance, until at last many of the largest
and most rapidly growing companies
have openly abandoned the motive of
life insurance as the motive to which
they appeal for their business; they no
longer offer the results of real life in
surance, attained by them as the
attraction to the men whose fami-
lies need its protection and whose bus
mess they seek: they give their con-
tracts other names; they suppress so
far as possible the appearance of a
life insurance contract; they endeavor
as far as possible to give them the ap-
pearance of a profitable investment for
the insured himself. He is offered, not
life insurance policy for the sake of
its protection to those who. need its
protection, but Bond" as money
making investment for himself, trust
ing, apparently, to the general ignor-
ance not to discover the unalterable
facts which make such a thing impos-
sible, so far as the great body of their
clients is concerned, and possible, if at
ALL only to few at the undue expense
of the many.
Life insurance undertakes to pay the
money value of a mans life to those
dependent on it, whenever they may
lose it by death. While he lives he
contributes to pay the values of other
mems lives by way of a premium pro-
portioned to his risk of dying, accord
ing to his age. His risk of dying in
creases each year; but his premium
does not Increase; therefore it must be
so calculated that proper part of it
can be put into a Reserve Fund to meet
the future increase of the risk; this
Reserve is put at interest, a. certain
part of which is yearly added to the
Reserve; an addition to his premium is
also made to provide for his share of
the expenses.
If the death losses are as heavy as
was assumed in computing the premi-
UNI, if the interest earned is no higher
than was assumed, and if the expenses
are as much as was assumed, then the
company will just pay it's losses as they
occur, and there will be nothing over
for anybody; the cost of the insurance
will just equal the income; but if the
losses are lighter, the interest rate
higher, and the expenses less, than was
assumed, saving will be made on each
of these items of total cost, and that
cost TO the company Will De SO mucn
less than the assumed cost.
Mutual Life Insurance undertakes to
give each man his insurance at only
what it costs the company; at his equal
share of that total cost in proportion to
his risk and to the premium he has
paid in. 1t returns to him, therefore,
his share of the savings. If it does tnis
each year, then he pays each year only
what his risk has actually cost the
company for that year. The more care
fully the risks are selected, the better
the rate of interest earned, the smaller
the expenses in proportion to the in
come, the greater the whole yearly saw
ing. the less the total cost to the COM
pany, the greater each mans share of
the total savings, and the less his share
of the total cost,-if he gets back his
share of the savings. That is Mutual
Life Insurance. There is no specula-
ton in that; there is nothing in that to
make it attractive to man as per-
sonal venture; it is a pure expense to
him, and no one is advantaged in any
case except his beneficiaries, who get
the money value of his life which they
would otherwise have lost by his death.
The only motive for a man to take a
policy of Mutual Life Insurance, there
fore, is the need of those dependent on
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