New-York tribune., 1907-09-18
POLICYHOLDER'S PLANT.
His Unsatisf factory Experience zcith
Insurance Com pdny.

To the Editor Of The Tribune.
Sir: About twenty years ago at age forty-fve,
was insured for 5000 in the Mutual Reserve Fund
Life Association. on the old assessment plan i
took this insurance the representations made
by this association that the rates of the old ine
companies were high and it could furnish in
surance a cost which would be from 80 TO 20
per the old line company rates. These
rates low at first but soon they began to
expand In an increasing ratio. and at the end
of eleven years 1 forced to give policies.
after paying in some $500
At this juncture 1 was visited by the state man
ager for this company in Connecticut, who urged
me to take out another form of policy. utterly
refused TO consider any policy except which
should carry level rate of premium through life.
He assured that he had such, and offered me
4 policy on what was called the five year COM
binatIon option plan" by which l was led to be-
1ieve by circulars and letters. which still have
that the rate of premiums would not be increased
during the life of the policy.
According TO a table of rates printed In one or
these circulars my premium then, at age fifty
seven, fixed s43 o5 thousand annually l
quote from this circular: These rates. being in
conformity with the standard mortality tables and
the experience of the oldest companies. are re-
garded as undoubtedly ample to provide for the
increasing cost due to advancing age OF the IN
sured. also TO pay the total disability claims, thus
rendering payments uniform throughout the life
of the policy" Among other promises In the same
circular these:
"V-cash surrender value after five years.
''VI-Extended insurance after policy has been In
force five years'-which promises also are printed
in my policy.
These Of the representations and
promises l found years after that there was
A fine print clause on the inside of my policy
which stated that under certain conditions there
might be collected such further sums as should De
found necessary. etc; but the average man does
not understand insurance terms. He takes out IN
surance upon information given and representa-
tions made. seldom sees his policy unul
the insurance Is effected, and the first premium
paid. l exception, and upon these repre-
sentations made me. through printed Circulars
letters and verbal statements this agent, took
out in April 1895. n policy for s2.oOo. upon whlch
have paid thus far some $500.
NV premiums were uniform. until two years ago
I received special CALI for 81, and my next
semi-annuaI payment was increased 10 $50 80 ana
has so continued. until l have regular cal!
for this same amount together with specili
CALI, for s27 % additional. which raises my pre-
miurn for the current half year from s43 o5 to
s7sis n fairly good raise-and when l ask. by let
ter for an explanation. I am informed by Charles
W Camp secretary Of the company that the
death rate has been above the normal anu 'Aa'
must expect to have premiums contnuaiIy
increased pay the increasing cost que 10 du-
vancing age
When I quote TO him the statements contained
I'm the circulars about level rates throughout the
life Of the policy" extended insurance. cash
surrender value and future dividends. am
told that these were all speculation and that l
am not entitled to anv of these options no
legal reserve has accumulated account Of this
unusual death rate" and yet have paid all ad-
dit,onal premiums and calls which are supposed
70 have been made to supply the dehciency caused
by this more than normal death rate
II seems strange 10 layman that the death
rate for the las nine years should have been above
that Of the standard mortality tables and the ex-
perience OF the Oldest companies" upon which my
policy was originally based.
Tho situation Is this: After having been deceived
into irving to get a cheaper insurance than that
furnished bv the old line companies. find myseir
at sixty-fve. when am debarred by age iro'ii
taking any other insurance forced to pay an e$-
tortionate and increasing premium or crop
my policy and forfeit all have paid to TINS COM
pany -,
THE Mutual Reserve Life Insurance Company. oy
it's action saws that its boast through all the ias'
twenty-five years that It could safely furnish me
insurance at - per cent of the rates charseo %
ola line companies is a fallacy and deluslon-
do not believe II. I attribute its failure 10 ms
oa,a,,a,t and lack OF business ability, or worse
Tho balance sheets Of the great companies suc.'
"a the Equitable. the Mutual and the Ne" io'N
Ttfa show that every dollar received oV Ceh'S'
anproxinnately. has been sufficient 10 pay All ~
nonses salaries. dividends and death losses an"
tho other 30 cents has accumulated until the assets
=. .aob r,ount into the hundreds Of millions
Surely the Mutual Reserve. with any sort OIL 'ai-
srer,ert should have been able TO do with 80 cents
uha, these other companies have done with oV anu
have a margin lett.
Uas wa rned years ago tlat tliis coii'''4''
u,o,,Id never make good its promises. did not
,aLe the warning and my object now is 10 warn
others NV advice 10 every holder or one or more
~ these "hve-year combination option policies VINO
fs under sixty years OF age is this Drop II anu
,ake ont other insurance with some OF the OLD com
nsnias which no Notwithstanding all the charges OF
cement and all the alleged graft whatever
else they may have done with their funds. nave
kent faith with their pocvholders to the last cent
Nv, advice TO all uninsured is 10 keep away from
the Mutual Reserve
The envelope which covers my policy In the Mut-
nal Reserve has printed upon It's back the roIlo"-
ing. THE Mutual Reserve Fund Life holds the
foremost place and leads where others follow Is
security is unmpeachable; its management IS unas-
saIiable: its future is unquestionable
It has certainly lead where 1t is to be hoped none
other ,,,ill follow 1t to have no security
Tho criminal courts process of deciding as to
ite "ranagement" and believe its future Is 'un-
questionable" in that II willard that before very
Iong-have its affairs wound up by the state and
90 ont OF existence, "a contamination deVoutly 10
be wished" ALbf'fNi =
Waterbury Conn. Sept. 10, lsO''
ueAQsT MEN FOR GAYNOR.