The Birmingham age-herald., 1909-06-23
UNEXPECTED BENEFITS.
More Voluntary Concessions to Policy
 Holders by the Metropolitan.

A remarkable spirit Of liberality toward its policyholders is again the striking fea- ture of the periodical statement or report of the Metropolitan Life Insurance com pany, a summary of which is published this week.
 The attitude of this great financial or ganization toward the millions of individ- uals who have relations with 1t invites comment, and affords some grounds for interesting comparisons.
 Broadly speaking, the inducements of- Tered by responsible life insurance com panies to insurable persons are of two kind. One consists in proposition to car " a definite amount of straight" in- surance at low cost; the other offers in- numerable 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 It. self. The first plan appeals to the man of judgment as a clear-cut business con tract under which all obligations are mutually understood. The other appeals to the speculative instinct and demands a higher degree of confidence In the in- suring company, which carefully avoids nn absolute guarantee of benefits propor- tioned to sthe high rates demanded.
 The Metropolitan Life sells straight insurance only; that is. it promises to pay at death, or at least the expiration of your policy a fixed sum plainly written in the contract. As matter of course, 1t must sell this insurance at a cost low enough to secure business in competition with all the big insurance companies. Having issued such a 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 it will be exactly carried out So far as we know any great financial or mer- cantile organization would consider such a contract final.
 But at this point the Metropolitan Life chooses to temper hard-and-fast business methods by injecting a little 'soul" into its after relations with the man who holds it's policy.s
 The business of the Metropolitan Life has increased tremendously year by year, while it's operating expenses, proportioned to the vast amount of insurance carried, grow steadily less. Ordinarily the result ing gains would be considered a legiti- mate reward of enterprise under capable management, in which the policyholders have no interest; but this particular in surance company chooses to share it's prosperity with them by paying bonuses and increasing benefits. s
 The report just issued makes remak- able showing:
 The company in ten years has reduced the ratio of expense to premium income on it's business in all departments 15 per cent. In the industrial department alone the reduction accomplished in the past five years amounts to per cent-this last item representing a total of $S,5O0000.
 These great gains are being used to in- crease the benefits 10 per cent on all policies in force since January 1, 1907.
 As to policies dated previous to Janu- ary 1, 1907, bonus of 8 per cent of the premiums is given for a year on all policies over five years old, and increased benefits are allowed on policies of long standing which become death claims.
 To sum up these benefits-not promised to policyholders nor expected by them 1t is shown that during the past 16 years the concessions and bonuses in the in- dustrial department alone are equivalent to a gift outright of f1a oonn0n