The Bridgeport evening farmer., 1909-06-17
UNEXPECTED BENEFITS
More Voluntary Concessions to Thou sands of Policy Holders by the Metropolitan Life Insurance
 COmpany

A remarkable spirit of liberaaity to- ward its policy-holders is again the ment or report of the Metropolitan Life Insurance .Company, summary of which Is published this week.
 The attitude of this great financial dividuals who have relations with it invites comment, and affords some grounds for interesting comparisons. Broadly speaking, the inducements companies to insurable persons are of two kinds. One consists in g. proposi- tion 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 ''particfpate" in the earnings of the company. receiving benefits that are self. The first plan appeals to the man of judgment as a clear-cut busi- ness contract under which all oblfga- tions are mutually understood. The other appeals to the speculative in- stinct and demands a higher degree of confidence in the insuring company, which carefully avoids an absolute guarantee of benefits proportioned 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, a fixed sum plainly writ course. it must sell this insurance at cost low enough to secure business in competition with all the big insurance companies. Having issued suoh a pol icy, the company has no further obli- gations under its terms until the spec flied benefits are dde 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 "sou1' into its after relations with the man who holds its policy.
 It must be kept in mind that the actual cost of insuring a life can never by any human foresight be calculated in advance with absolute exactness. The death rate in a given population varies from year to year; the earn ings of invested funds are bound to be greater or less through periods of prosperity and depression, the cost of operating the Company's business will each year bear a different proportion to the number and value of policies in force. Insurance must be sold at a price based upon it's probable future and the safety of the company, upon which all its policy-holders depend for protection, must be assured by esti- mating the cost as high as past exper- fence has proven necessary.
 The business of the Metropolitan Life has increased tremendously year by year, while it's operating expenses, proportioned to the vast amount of in- surance carried, grow steadily less. Ordinarily the resulting gains would be considered a legitimate reward of enterprise under capable management, in which the policy-holders have no i'm terest; but this particular insurance company chooses to share it's prosper ity with them by paying bonuses and increasing benefit. .a,.
 The report just issued makes a re- markable showing:
 The Company in ten years has re- duced the ratio of expense to premium income on it's business in all depart ments Is per cent In the Industrial Department alone the reduction ac- complished in the past five years amounts to 8 per cent.-this last item representing a tctal of three and a half million dollars.
 These great gains are being used to increase the benefits 10 per cent. on all policies in force since January 1, 1907.
 As to policies dated previous to Jam uary l, 1907, a bonus of per cent. of the premiums is given for a year on all policies over five years old, and increased benefits are allowed on poll .cies of long standing which, become death claims. I
 To sum up these benefits-not prom ised to policy-holGers nor expected by them-it is shown that during the past sixteen years the concessions and bonuses in the Industrial Department alone are equivalent to a gift outright of eighteen millions of dollars.-Adv.