The Glenwood post., 1908-02-08


heard much during the past few
years about cheap fraternal in
surance and various lodges have
Wed with each other in the max
ing of figures which would appeal
to the unsophisticated who were
to join some lodge "for the insur-
ance" and then go out and be-
come missionaries to induce 9th
ers to do the same.
Thus men have sung the praises
of one lodge or another, their
good opinions always being based
on the low rate the order charged
in monthly assessments to carry
thousand dollar insurance pol
icy overlooking entirely the vari-
ous conditions which might be re-
sponsible for these low charges.
Thus it has come to pass that
some men. well versed in Organi-
zation and in the life insurance
business and understanding well
the credulity of the average man.
have organized fraternal insur-
ance societies. using great care to
select young and healthy subjects
in order that the mortality rate
would necessarily be very light.
The monthly assessments were
fixed at ii very low figure, the pro-
moters well knowing that but
very light mortality fund would
be necessary during the first few
years of such company exist
ence.
This low rate constituted the
chief feature of many of these
fraternal insurance societies and
has been paraded by special
agents and members as the draw
ing card in securing new mem
berS.
As outsiders have listened to
the arguments in favor of this
or that society their minds have
invariably centered around the
rate of assessment and as they
have added together the twelve
monthly assessments and com
rared the total with the annual
rate charged by the old line com
panies they wondered how the old
liners could possibly secure bust
ness at the rates charged by them.
Good Insurance Costs Money.
And all this time these people
have been overlooking one very
important fact, viz: That it is
worth certain sum of money
paid annually or monthly to carry
the insurance on man OF a GER
tain age. This has been almost
definitely determined by mortal
ity tables extending over per-
iod of over 200 gears
Now it must follow that any
company which pretends to carry
ones risk for less than this
amount must do so at a loss or
have an adjustment of rates every
few years. This is just as IN
evitable as any of the great laws
of nature. If insurance is car
ried at less than cost it is not
good insurance and the only safe
and sensible way for company
which in the beginning fixes its
rates at too low a figure is to
afterwards adjust them so it may
be able to meet the demands made
upon it.
But this is difficult thing to
do. Members who have become
accustomed to certain figure of
ten rebel against any increase. for
getting that as the mortality rate
cit is shown conclusively thai
ments per year and collecting t
members, we cannot hope to NEE
fact. our Beneficial members, met
lowest mortality standard, and b.
for only a minor portion of the W
the certificates they hold.
cit is to be remembered that
approach that much closer the dat
Law. the more years we waste in d
larger must be each member IN
amount we must provide to meet
ga reserve in the pocket of til
needed, by the way. 1t does not e
lower rates for the members. and.
official auspices, is usually dissipa'
their obligations at maturity.
cit should be remarked here
ty, like ours, never defaults. nev
the members, who in fact are tn
they cheerfully pay less than co
the time comes for them to produt
they wax indignant and lapse
nfficers-for what? For their il
something for nothing.
"We must either provide a 7
sonably low and level for life fro
more money each year from each