Daily capital journal. (Salem, Oregon) 1903-1919, 1909-06-24
UNEXPECTED BENEFITS.
More. Voluntary Concessions. TO
Thousands OF Policy Holders by
the Metropolitan Life Insurance
Company.

A remarkable spirit OF llberality
toward It's policy holders is again
the striking feature OF the periodical
statement or report OF the Metropol-
itan Life Insurance Co., sum
mary OF which is published this
week.
The attitude OF this great finan-
cial organization toward the mill
ions of individuals who have rela-
tionS with II invites comment. and az
fords some grounds for interesting
comparisons.
Broadly speaking, the induce
ments offered by responsible life in
surance companies 10 insurable per-
sons are OF two kinds. One consists
In proposition TO carry a definite
amount OF straight" insurance nj
low cost; the other OFFERS innumer-
able plans by which in return for
excessive premium payments the
person Insured is 10 participate" in
the earning OF the company, re-
ceiving benefits that are not def
nitely stated in the policy itself. The
first plan appeals to the man OF
judgment as a clear-cnt business
contract under which all obligations
are mutually understood. The other
appeals TO the speculative instinct.
and demands a higher degree OF
confidence In the insurlng company,
which carefully avoids an absolute
guarantee OF benefits proportioned
TO the high rates demanded.
The Metropolitan Life sells
straight" Insurance only: that is,
Is promises 10 pay at death, or at
the expiration of your policy. a fixed
sum plainly written In the contract.
As a matter OF course, IL must sell
this insurance at a cost low enough
TO secure business in competition
with all the big insurance compa-
nies. Having issued such a policy,
the company has no further obliga-
tions under its terms until the speci-
fed benefits are due and payable.
The person insured is satisfied with
hi contract and expects only that
II will be exactly carried out So far
as we know, any great financial or
mercantile organization wonld con-
slider such a contract final.
But at this point the Metropoii-
tan Life chooses 10 temper hard
and-fast business method by inject
ing little Soul" into its after re-
lations with the man who holds its
policy.
IL must be kept In mind that the
actual cot OF insuring a life can
never by any human foresight be cal
culated In advance with absolute
exaetness. The death rate in a given
population varies from year TO year;
the earnings of invested funds are
bound 10 be greater or less through
period OF prosperity and depression.
the cost of operating the company's
business will each year bear a dine
rent proportion to the number and
Vahe OF policies In force. Insurance
must be sold at price based upon
IT. probable future cost under these
varying conditions. and the safety
OF the company, upon which all its
policy holders depend for protec-
tion, must be assured by estimating
the cost as high "a past experience
has proven necessary.
, The buiness OF the Metropolitap
Life has increased tremendously wear
by year while It's operating expenses.
proportioned to the vast amount uf
Insurance carried, grow steadily less
Ordinarily the resulting gains would
be considered a legitimate reward
OF enterprise under capable manage
ment in which the policy holders
nave no intore-t; bO. this particular
insranee company chooses TO share
It's prosperity with them by paying
bonuses and increasing benefits.
The reDort ju-t issued makes a
remarkable showing:
The company in ten years has re.
dneed the ratio OF expense TO pre-
MUM income on its business in all
departments l5 per cent. In the
industrial department alone the re-
dueuon accomplished in the past
nVe years amounts 10 per cent
this Ia Z item representing a total