The Savannah morning news., 1904-03-13
is 1T A GUARANTEED DIvIDENDr
The Return Premium Plan of Life
Insurance Explained.


Some companies write what is known
to the initiated as the return premium
plan. 1t means that in consideration
of certain sum added to the regular
premium, the company will agree to
pay, in addition to the policy, should
death occur within the accumulation
period. a part, or the whole of the
premiums that have been paid-ac-
cording to how much additional pre-
MUM the assured is willing to pay.
This is nothing more nor less than
a little term insurance to be added to
the policy if death occurs before the
completion of the accumulation or ton
tine period, and can by no means be
called a guaranteed dividend" If
one is obliged to pay extra to have
part of his premiums returned, should
death occur within a period, say of
twenty years, it certainly is in no
sense a dividend. Another thing which
proves that this is no more than. term
insurance, is the fact that in event of
the death of the insured after the ex-
piration of the accumulation period,
the return premium plan does not ap-
ply; and the extra premium paid for
this privilege, has all been lost to the
insured.
The return premium plan is gener-
ally offered with that form of life in
surance where the dividends are de-
ferred for long period, generally
twenty years. If one examines the
policy contract, it will be found to
contain the following: "Surplus.-The
first distributive share of surplus shall
be apportioned to this policy at the
expiration of twenty years from date,
ETC." Now if there is no dividend to
ho until the nYnirqti0n of
twenty years, how can this scheme be
termed "a guaranteed dividend" to be
returned annually?
+ Flitcraft's Courant Ga recognized au-
thority in life insurance matters) in
answer to a correspondent says Most
companies think it better to issue the
term policies separate from the regu-
lar policies than to combine the two.
Policyholders, where term policies are
separately issued, understand clearly
the nature of the contract, where in
the other case they are deluded in the
belief that they are getting something
for nothing when as a matter or fact
they are paying a very high term rate
for the return premium feature
comparatively few ever realize upon
the return premium feature OF their
contracts.
Again it will be found on proper in
surrendered for it's cash value or for
its paid-up value any year after the
third, and before the twentieth, moth
ing but the cash value or the paid-up
value stated in the policy can pe
realized-not one cent of dividend OF
any kind.
There are no such tricks in Mas
sachusetts Mutual contract. Annual
dividends are paid to the insured in
cash, may be applied to reduce the
premiums, increase the insurance or
left on deposit at compound interest
Csubiect to withdrawaD and applied to
shorten the premium paying period OF
the policy.
There are many other valuable fea-
lures connected with Massachusetts
Mutual policy, and full information
will be gladly furnished If you will
write stating your age and address to
Harty & Apple, Managers for Georgia
and South Carolina, 1T Bay street
east, Savannah, Ga. Active, reliable
men wanted as agents.-ad.