The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-12-26
IMPORTANT ANNOUNCEMENT
Of the Metropolitan Life Insurance
Company.


What is in many respects the most in
forming and significant paper issued by
any life insurance company during the
present year has just appeared over the
signature of John r. Hegeman, president
of the Metropolitan Life. While the COM
munication Is addressed to the company 5
agents, and is in the nature of a re-
view and announcement covering matters
chiefly interesting to the field force, it
deserves attentive reading by every one
who holds or intends to secure a life in
surance policy.
It appears that the Metropolitan Life
has for some time been engaged In the
preparation of new mortality tables
based upon its own experience. BY COM
parison of given periods i'm recent years
with corresponding periods in former
years, back to 1890 the fact is established
that among the company's policyholders
there has been sufficient improvement IN
mortality Chat Is. a smaller average or
deaths at various ages) to warrant certain
changes affecting future premiums and
benefits, all directly in the interest of
those insured in the company. With char
acteristic thoroughness and frankness
these results and changes are specified
in minute detail, not put forth as "esti-
mates or vague promises.
Their significance to the insuring pub
lie is a reduction in the price of insur-
IN the INDUSTRIAL department anu
through a readjustment of rates of COM
missions to agents. a reduction of pre-
miums charged in the ordinary depart
ment
Concerning the policies to be issued in
1907 this information is given:
"Our new policies will be found most
attractive in form and even more Attrac-
tive In substance. They contain all of
the advantages and concessions which we
can afford to give and which the public
have the right to expect The surrender
values will be found to be generous AMI
take the optional forms of extended IN
surance paid up insurance and cash
They are the ahdard forms of the New
York department. the work of experts
which has legislative approval They are
as plain to the understanding as they
can be made We have discontinued many
plans as unnecessary. We shall issue
ordinary life limited payment, endowment
and term plans. and We have applied
for permission and hope to issue in addi-
ton three plans which the public nave
STAMPED with their approval-namely the
optional life or endowment under new
name. the modified endowment. with life
option; the guaranteed dividend, also UNI
der new and more descriptive name
the guaranteed increased endowment; and
the reduced premium life under its new
name, life with reduced premium after
twenty years.
One noteworthy passage relates to the
companys liberal policy of distributing
dividends and benefits not contemplated
In its contracts with policyholders. Pres
ident Hegeman asks his agents to note
that "This year the company has been
discussing the enormous sum of about
two millions of dollars in voluntary divi-
dends upon participating industrial
policies bringing the total amount of I'M
promised dividends in twelve years to
about ten millions of dollars to industrial
policyhoders in the form of dividends
on premiums, dividends on death claims
and increases of benefits upon existing
policies." He adds eve have been en-
abled to accomplish this work all these
years by steady improvements in business
methods by steady extensions of bust
ness territory. by steady additions to in
surance In force by watchfulness in writ
ing and taking care of business, resulting
in decreasing death rate decreasing
lapse rate. and decreasing expense ra re.
These improvements We have announced
TO YOU from year to year. but perhaps
from this very fact-their gradual. steady
OBSERVATION-DISCLOSURES have failed to grasp
their full significance. Yet year by year
we have told you our aim-to reduce
expenses. to improve the death rate, to
better the policies. to distribute the sur
plus. so that each year larger pro-
portionate amount could be returned to
olicyholders and a smaller proportionate
amount used in expenses
He goes on to say that although the
wear is not ended, the records show from
July l to date December u, that the
companys increase of industrial business
exceeded the increase of any previous
wear with the exception of two, that in
the ordinary life department the business
of September, 1905, while October and
November showed large Increase, and
December promises to be a record
breaker" Further he says
Taking the last six months for COM
parison-June to November, inclusive
YOU wrote more ordinary than ever was
written by the company in the correspond
ing months. and exceeded 1905 by over
six millions and a half, and this it must
be remembered by more than 5000 less
men,"
Other matters discussed in the an
nouncement are no less interesting than
those referred to in this brief review
The entire paper is commended as an
educa tional and timely contribution to
insurance literature.