Omaha daily bee., 1903-02-16
HFn-SEVENTH ANNUAL REPORT
OF TEE
CONNECTICUT MUTUAL LIFE
INSURANCE COMPANY,

more and more distinctive and peculiar in
terest for its members, for he American
public, and for the whole insurance world.
and for several remarkable reasons worth
noting.
Fur many years the great majority OF
companies have been gradually swerving
from the lines Of practice which are native
and inherent In life insurance. untl n last
many Of the largest and most rapidly
growing companies have openly abandoned
the motive uf life insurance az the motive
10 which they appeal for their business.
they no longer uder the results Of real Hfs
insurance STAINED by them as the sttrhc-
ton 20 The men whose families need its
protection and whose business they seek
they give their contracts other names:
they suppress as tar as possible the Rp-
peErHnDe Of a life insurance contract. they
snoeavor as far ne possible 10 give them
the appearances Of 3 profitable investment
for the insured himself he is offered. not
a life insurance policy for the sake Of its
protection 10 those vho need It's protection.
but 3 Bond" as q -moDsy-mEkinE invest
msnt FOR himself, trusting, apparently, TO
the general Ignorance not to discover the
unRltsrable facts which make such 8 thing
impossible. 30 far as the great body Of their
A-IAsn II AaAlA ANAH NAnHAAalr II a. a.
only 10 a few al the undue expense Of the
many
Life insurance undertakes TO pay The
money value Of d mans life TO those de-
pendent on it, whenever they may lose il
by death While he lives he contributes 10
pay the values Of other mems lives by way
Of q premium proportioned 10 his risk Of
dying. according to has age. Bis risk Of
dying increases each year, but his premium
does not increase. therefore IL must be SO
calculated that 3 proper pErt Of il can be
put into q Reserve Fund 10 meet the future
increase Of The risk; this Reserve is pui ar
interest, q certain part OF which is yearly
added 10 the Reserve an addition 10 this
premium is also made TO provide for MS
share OF the expenses.
II the death losses are az heavy as was
ssumed in computing the premium, II the
Interest earned is no higher than was as
sumeo and II the expenses are as much as
was assumed, then the company viii just
pay lis losses az they occur. and there viii
be nothing over for anybody; the cost Of
the insurance VIII just equal the income
but II the losses are lighter, the interest
rate higher and the expenses less than wm
assumed 4 saving VIII be made on each Of
these items Of total cost. and that cust 70
the company VIII be 80 much less than the
assumed cost.
Mutual Life Insurance undertakes TO give
each man his insurance AT only what il
costs the company: al his equal share Of
that total cost in proportion 10 his risk and
TO The premiums he has PAID in. II returns
10 him. therefore, his share Of the savings.
II il does this each year. then he pays each
year only what MS risk has actually Cost
the company for thai year. The more care
fully the risks are selected the better the
rate Of interest earned; the smaller the ex-
penBes in proportion 10 the income, the
greater the whole yearly savings the less
the total cost 10 the company the greater
each mans share Of the total savings And
the less his share Of the total oost-if he
gets back his share Of the savings. That Is
Mutual Life Insurance. There is no specu-
lRtiOn IN that; there is nothing IN that tC
make il attractive 10 q man as Z personal
venture; IL is a pure expense 10 him. and
nc one is ~RdvEntaged in any case except his
b~snehciEries, vino ger the money value Of
his life which they would otherwise have
lost by his death.
n only motive for q man 10 tnks &
policy Of MubGRl Life Insurance, therefore
is The need Of those dependent on ms life
Ia - kAbAIAAAAA AAA An AAAa - eve LII
protection 10 those whom he has made, OF
Who rightly are. dependent On his Life and
its hnEnciEl prodHG, and his desire 20 gel
il al only tE actual. proper cost.
The only way 10 make a policy attractive
as q personal venture 10 any man is 70 d.
away with mutuRIity. except IN the premium
charged; charge the fun mutual premium
but, instead Of giving back 10 each man MI
I ghurn nj Fhu TvaaW1Tuu GurauEu A4.-slr 49,
UP among only a few and make the resi- &,
without.
No man would accept such q proposition
unless be was either assured, or felt & con
siderable degree Of confidence. tina h
was 10 be one Of the few. So the thing /
put ID as a gamble. Each MAE agrees L
leave his share Of the savings with the CON
spRny fnr. say. twenty years; that If ne die
/, meantime, ms policy being Etin In force, a
his yeArly shares Of savings which b
might have hRd back shah be fDrfeite
10 the company for division among IN
final few; also, II he does moi keep u
his policy, his share Of the savings Will
. II was In force shall so the same wa
The division is supposed 10 take place 4
the end Of the uWeury years among thul
. who have survived 80 long and also hEV
paid their full premiums straight through
but each one has had 10 agree befurehRn
s 70 accept whatever the company EnDts
! hin az his share; there is 10 be no stats
I menI OF the size Of the pot" nor an
accounting for IT'S distribution. The q
4 pscted value Of the share In a. OF each
the hnal few Is set forth IN the esttmHt,
a Of various bonds" and other forms
contracts, the specific feature Of al
which In the pOstpunensnt o. all dividend
, for some period % years. II is the chan.
o. being IN al rhe final division and Eetti1
h others have lost thar iE the Ertrai
ton. addressed 70 the personal interel
Of the man and not 20 his sense o. dui
ana honor toward his dependent fHmi-
That chance. EK estimated by the con
: pEuies originating the scheme, Is about OF
/, in three. At least tEO-Lhirds viii drop OF
I. by the way. Each man expects 70 be
the une-thtrd- So he stakes hiB own prop
! share uf the savings for twenty years
n the hope Of helping divids what the 9th
rvo-fhirds must lose. And the coDpal
4 holds the stakes without accountability
n any one.
s Notwithstanding the fact that none
e the companies h0ing THIS surt q -1nTes
3 meur" business have ever mace q dividsi
e which even HppruLimHtsd the estimEt
which attracted the Investors. and N
A these dividends have steadily n RAPID
Ehrunk through al the many years a. ths
experience, n 10 true thar they stin So