The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1912-05-25

policy contract. This Is brought
about by applying the existing cash
value OF the policy to the purchase OF
a term policy, good for such length
Of time as the amount of money avail
able will purchase at the then attain.
ed age Of the insured.
illustrative of these three pToyi.
sians, the reserve value of an ordin.
AIRY life policy on } per cent reserve
basis, age 80 at issue, after having
been in force for five full years. is
about $4,000. This amount in cash
would be returned to the insured
should he wish to discontinue his
premium payments, and, as was ex.
planned in an earlier article, is the
amount that was set aside to pio.
vide through it's accumulations !or
| the payment Of the death claim when
theoretically 1t has been reached in
accordance with the expected length
of life of the insured, the difference
between this amount and the amount
paid in during these five years by
the policy holder representing his
/ contribution to the mortality account.
/ or premature deaths, and the admin.
istrative expenses of the company
Should, however, the insured prefer
to apply that money to the purchase
of fully paid for policy, we find that
al age of 80, which is now his attained
age, $45 would pay for policy of s1o9
upon which there would never be any
further premiums to pay, and which
would be payable under the same
conditions and to the same benefi.
Charles as under the original policy,
whenever death of the insured &C.
Cured.
But II the insured prefers to use
that cash value in carrying a larger
amount of insurance for a theoreti-
cally shorter time, we find that at
the attained age of 80 years. S45
would buy term policy for one
thousand dollars good for something
over 5 years, and If the insured
elected to settle with the company
under this provision, his insurance
would be effective for it's face value
for over . years after he had ceased
his payments. The reserve value be-
ing a constantly increasing factor for
as long period as the insured con.
tinues his premium payments, 1t ne
cessarily follows that the equivalents,
the paid up insurance and the TEX.
tended insurance" likewise increase
In value, and we find that If the man
in the illustration had continued his
premium payments for say twenty
! years, he could then discontinue any
further payments for the future and
receive in cash $3.50, or in paid up
/ insurance, $513, or extended insurance
for nearly II years longer without the
! payment OF any premiums whatever,
and should his death occur during
this extended period, of II years after
the twentieth, the full amount of The
original policy would be payable at
once, 1t must be understood that un
der this latter condition there would
be no deductions made for unpaid
premiums, for the insured has used
the aforesaid cash value OF $3.50 for
the purpose of buying and paying
for what virtually amounts to a term
policy of $1,000 covering a period of
II years
II will thus be seen that under no
conceivable conditions can man
fail to secure full value received for
every dollar that he pays into legal
reserve insurance company. Whether
he lives, or whether he dies, wheth r.
he continues his insurance through a
long period Of years, or whether after
comparatively few years he for any
reason determines that he no longer
Weeds the protection and ceases his
policy, he is at all times and in all
ways so protected in his equity thai
there is no possible manner In which
he will be able to analyse his life in
surance investment into a financial
loss.
The particular plan OF insurance
described in this article, the "ordin-
airy" life plan, is, as said before, he
basic life insurance policy, and the
one from which all others are evolved