Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1909-06-22
UNEXPECTED BENEFITS.
More Voluntary Concessions tt
Thousands of Policy Holders
by the Metropolitan Life
Insurance Company.

A remarkable spirit OF HDefailty TO-
| ward It's policy holders is again the
striking feature of the periodical state
ment or report of the Metropolitan
| Life Insurance company, summary
| of which is published this week.
The attitude of this great financial
organization toward the millions of in
dividuals who have relations with it
| invites comment, and affords some
grounds for interesting comparisons.
Broadly speaking, the inducements
| offered by responsible life insurance
companies to insurable persons are of
two kinds. One consists in PROPOSE
ton to carry a definite amount of
| straight" insurance at low cost; the
other offers innumerable plans by
which in return for excessive premium
payments the person insured is to
! participate" in the earnings of the
company, receiving benefits that are
not definitely stated in the policy
itself. The first plan appeals to the
man of judgment as clear-cut bust
ness contract under which all Obliga-
tons are mutually understood. The
other appeals to the speculative in
stinet, and demands a higher degree
of confidence in the insiring company,
which carefully avoids an absolute
guarantee of benefits proportional to
the high rates demanded.
The Metropolitan Life sells straight"
insurance only; that is, it promises to
pay at death, or at the expiration of
your policy, fixed sum plainly writ
ten in the contract. AS matter OF
course, it must sell this insurance at
in competition with all the big insur-
ance companies. Having issued such
policy, the company has no further
obligations under its terms until the
specified benefits are due and payable.
The person insured is satisfied with
his contract and expects only that 1t
will be exactly carried out. So far as
I'VE know, any great financial or mer-
camille organization would consider
such a contract final.
But at this point the Metropolitan
Life chooses to temper hard-and-fast
business methods by injecting little
Soul into it's after relations with the
! man who holds its policy.
1t must be kept in mind that the &C
ltuai cost OF iGsuring a life can never
by any human foresight be calculated
IN advance with absolute eXactness
Tine death rate in given population
varies from year to year; the earning:
lof invested funds are bound to 81
greater or less through periods of pros
lrerity and depression, the cost o
Operating the company's business viii
each year bear a different proportion
Ito the number and value of policies il
force. Insurance must be sold at ;
lrrice based upon it's probable futur,
cost under these varying conditions
and the safety of the company, upol
which all it's policyholders depend 70
protection. must be assured by est
mating the cose as high as past eS
perience has proven necessary.
The business of the metropolitan
!. Life has increased tremendously yea
Ivy year, while it's operating expenses
proportioned to the vast amount of in
sLrance carried, grows steadily less
Ordinarily the resulting gains woul,
he considered a legitimate reward O
enterprise under capable management
in which the policyholders have no ii
terest; but this particular INSURANCE
company chooses to share its prospe'
ity with them by paying bonuses an
increasing benefits.
The report just issued makes r,
markable showing:
The company in 10 years has re
duoed the ratio of expense to premium
income on it's business in all depar
ments 15 per cent. In the industris
department alone the reduction accom-
pllshed in the past five years amount
= to 8 per cent-this last item represent
ing a total of three and a half millio
dollars.
: These great gains are being used t
II Increase the benefits 10 per cent o
all policies in force since January
1907.
AS to policies dated previous to Jar
nary 1, 1907, bonus of per cent @
the premiums is given for year on al
policies over five years old, and il
Icreased benefits are allowed on policie
OF long standing which become dealt
claims.
To sum up these benefits-not prom
iised to policyholders nor expected b,
tfem-it is shown that during tn
past 1G years the concessions an,
bonuses in the industrial department
alone are equivalent to a gift GU:
! right of eighteen millions of dollars.