Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1906-07-05

insurance protection with increasing
+! age, there must be 4 reserve which is
the equalizer between the hazard OF
increasing age and the original level
premium fixed at age of entry. IA
equalizer there must be under any
correct plan of life insurance 1t may
be an increase in yearly premium, or
an annually decreasing amount of in
surance. or reserve, but one of these
equalizers is demanded by the laws or
mortality.
You might as we'll attempt to
conduct bank and ignore interest
and the financial standing of your
customers, as to attempt to conduct
the business of insuring lives and Ig-
more the teachings of the laws of NOR
tally. Without calculating or basing
the rate of premium upon tables of
mortality, the policy of life insurance
becomes pure and simple gambling
contract. By no method can life In
surance extending over a period Oh
more than one year be written with
out the accumulation of reserve, or
a gradual increase in cost, and no
system has yet been discovered or de
yised which will permit ignoring the
laws of mortality and avoid failure
and diseaster.
The argument, the reserve is in
the pockets of our members was not
and never will be carried out by ex-
perience: If it really ever were there,
the pockets must have been so deep as
to place it wholly beyond the reach
of the arrangements or receivers.
New members sufficient to keep
the payments below the actual net
cost, are an impossibility for any
length of time. and just as soon as
this increase in new blood fails to
continue in an increasing ratio the
death rate and cost bound up.
Good Work Accomplished.
1T is true that the several states
have prospered by the great work ac.
complished in so modest a way by
fraternal societies, for the proceeds OF
the membership certificates have been
the means OF preventing widows ana
orphans from becoming public charges
However. you must not overlook the
condition of the membership of those
societies that have been in existence
for a great many years and made nc
provision for a reserve. Many mem
bers have had their rates increased sc
high that they were unable to con
tinue payment; others with impaired
health could not procure insurance
elsewhere, while in practically every
case, the members earning power
during the years of membership il
such societies has been such that hs
+, could have readily paid little NOR,
each month, thereby creating a re
serve sufficient to protect his policy
or certificate.
Awakening intelligence.
| but I am pleased to be able to sa,
that there are signs Of awakening in
telligence on the part of the officer.
of some of the fraternal societies
, who have decided before it is too lat,
to remodel their plans, place then
upon safe basis and furnish true
; indemnity to their members; but leg
, islation is needed to effect this reform
, in societies, the officers and members
, of which, apparently for selfish pur
, poses, refuse to readjust their rates
, on All adequate basis. ! arr firr1
believer in the fraternal society with
adequate rates, but would be a hlse
friend, indeed, IL / did.not point out
the true situation, no matter how un
palatable and unpleasant it may be.
Lessons Of Experience.
Five facts of the greatest value To
fraternal societies in the future have
been demonstrated through their ex-
perience:
Il. Rates must be calculated on
mortality tables.
%. Reserve provisions must b.
made to equalize the hazard of ia
creasing age.
20. Provisions must be made for
an adequate regular increase in mem.
bership.
"A. Fraternal societies by theh
method Of economy of management,
can grant insurance at less cost than
does the old line company.
/ 80. Fraternal insurance properly
conducted, more nearly covers all the
I napds of the neonle
TOO much stress cannot be laid
upon the members of fraternal soci-
cites that payment Of the premium,
assessment or rate charged, consti-
tutes but part Of the cost member
should give in return for the protec-
ton afforded; some service for the or
ganization-the securing of new mem
bers--constitutes as much part OF
the cost as does the premium. And
while the theory OF new blood can by
no means take the place of recogni-
ton Of mortality tables, 1t is neverthe.
less fact that those societies which
have received large regular increase
in new members have been able {,