The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-09

OF the $227, 347, $3.50 which The Connecu-
cut Mutual has received from its policy
holders, it has returned to them or paid TO
their beneficiaries 1927, S94.16. or $3.50 per
cent. What it has so paid back and what it
still holds as security for policy contracts
aggregates $780,, 052, .S9. or 12S.46 per cent
of its receipts from policy-holders. rms
has been done at an expense ratio OF only
92S per cent. of the total receipts.
NATURE OF PRESENT COMPETITION.
The competition for public favor in life
insurance continues to travel largely on
three distinct abnormal lines: First. post
ponement of all dividends for ten or twenty
wears. whereby the effect of extravagant
EXPENSES is concealed till the end of the
period. and whereby the savings on the
premiums and reserves of those VINO drop
out in the meantime expected TO De ABOUT
two-thirds of the whole in twenty years. al i' Z
to be divided among those only VINO remain
through: a speculation for the rev lucky
at the expense of the many unlucky mu-
tuaT' policy-holders:
Second. by the so-caled incontestable pol
icy, which puts upon the honest policy
holder the payment of the loss on the dis
honest one to whom alone such a feature
would presumably be attractive:
Third. by giving every policy-holder by
way of an annual cash value" the right
to withdraw his contribution TO the reserves
in any year. which thus gives all the pol
icy-holders the right to demand all the re-
serves in any year 10 the complete destruc-
ton of the Company; and this demand Is
first lien on all the assets and a first oollga-
ton on the part OF the company, 10
which the insurance feature Is a mere tenn
porary and easily defeasible incident Inc
premiums paid in ostensbly for life insur-
ance have a string to them, to be used
at will, which converts the Company INTO
an actual Savings Bank, without the inter
est on deposits which makes 1t TO the per
sonal advantage TO the depoSltor not 10
withdraw his deposits under ordinary cir
cumstances; and with the further and great
difference that whatever one deposits IN
the bank suffers no subtraction from It's
face and receives in addition all the interest
earned less a relatively slight expense &C
count while the premiums paid 10 the Ire
Insurance company must annually contrib
ute to losses and 10 relatively heaVy eX-
penses; so that the reserve which can De
withdrawn is as rule much sinai Ter, man al
the sum of the premiums he mas pald IN,
and his privilege costs him out OF all decent
proportion.
And not the least mischief of this practice
is the fact that in reality and In the re-
sulting attitude of mind of the insured II
subordinates the duty of protection for
which alone life insurance exists and with
ont which il would never be used and could
never have been conceived to the changing
personal interests of him on whom thar
duty constantly rests. Under mulIituue oI
conditions he is frequently tempted 10 use
for himself the fund which alone secures
that protection TO others which Is sun MS
duty. and his most serious duty because
of their necessity and their constant Danger.
Te no longer regards his payments as a
fund permanently withdrawn from the eA-
igencies of his business and sacredly deyot-
ed TO the performance OF his unselnsh ONCE
toward his own. His contract at once ana
ALWAYS prefers his claim TO theirs.
And it will not be many years before the
great mass OF the life insurance business
of the country will stand on this basis, its
continuance and not only the welfare but
the existence of the companies contingent
on the nOn-exercise OF the right OF VIII
drawaI of any and all funds az Will
In the midst OF this sort Of competition.
which brings an enormous business but
with enormous waste, at an expense which
is as reckless as it is unnecessary, and
which contradicts every principle and meth
cd by which proper and adequate results
as 10 the security of contracts, the cost or
insurance. equity between members, and the
integrity Of the company ltselI can De as
sured, The Connecticut Mutual holds stead
fast TO the truth which. be IL never so
widely or lightly disregarded, can never be
denied that the paramount purpose OF
life insurance, the one ana oniy Pecu il.
service il Is constructed and lifted 10 rem
der which il alone can render, and the only
one worth its necessary cost even at
minimum and the one spring OF its high
motive is Ito defend and provide for those
whose welfare depends on the continuance
of ones life and who must suffer in all their
future by its loss: that Mutual Life lnsur-
ance is the equal cooperation in good faith
of those on whom rests the sacred privilege
and duty TO protect. TO the end that the
needed protection may be most certainly
and effectively given. and that by such
equal cooperation the cost TO each may be
made as small as possible; that the COM
many which undertakes TO become the in
strlirnent OF such cooperation is therefore
bound TO shape its every plan and practice
to conform 10 those conditions which en-
ahle in TO fulfill those ends IN the highest
degree aud with the greatest certainty in
that far future 10 which its contracts ex-
tend.
That beneficent function OF Mutual Life
Insurance in that view of its intrinsic
morality, The Connecticut Mutual has full
elled with an unequaled success for fifty
eight years; and il moves toward its future
of beneficent uses adequately prepared.
Respectfully Submitted.
JACOB l.. GREENE,
President
Hartford. January Is. 1904.