Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-11-27
~ Modern Woodmen Rates REIMBURSEMENT ~
Chicago Camp

on revision, consisting or hve neigh
bors outside of the executive council,
to investigate the whole question and
report at Chicago.
This committee, with the assist
ance OF the head clerks Office and
George Dyre Eldridge, the distin-
guished New York actuary, investigat-
ed the subject thoroughly and report
ed TO the Chicago head camp. That
body adopted the plans and rates
which have been in effect as TO new
members since May l. 1912. Every
old member not transferring mean
while will continue on the old plan
and rates until Jan. 1, 1913, when he
will be automatically transferred to
the whole life level rate plan at his
then attained age. Those transfer
ring meanwhile will do so at their
present attained ages and will have
their choice of any one of the several
plans proposed by the society, whole
life, term, step rate, or combination.
TERN INSURANCE.
Term insurance is something new
for the Modern Woodmen, as is the
step rate, sometimes called the natur-
al premium, which increases with the
years OF the member Term insurance
to age so, 80 or 20 means insurance
which expires when the member
reaches the age specified In the GER
tificate Ii is a plan intended to give
the maximum of protection at the
minimum of cost and is designed for
the husband and father who wishes
to be protected during his productive
years, while his family is dependent
upon him, but does not wish to burden
himself with the additional cost of in
surance that would go TO children nc
| longer dependent upon him should he
survive the term period.
The rate offered under any one OF
/ the several plans adopted by the Chi
cago head camp is the mathematical,
| equivalent of that offered under any
other of the society's plansefor the
same age. In every case the rate is
! based on a mortality table computed
/ from the society's own experience
/ The National Fraternal Congress ia
/ BILE, the recognized standard used by
1 fraternals, is about II per cent high
er. and the American Experience Ia
1 BILE, employed by the old line compan
/ les. is about 80 per cent higher thar
| the Modern Woodmen table.
Under the natural premium (steI
rate) plan, the member may have pro
] lection at actual cost, but this in
/ creases, with his advancing age and il
open to the objection that it requires
the largest contribution in the late
years, when members are supposed Il
be least able to pay.
THE LEVEL RATE.
To avoid this objection, most societ
les operate under rates of contribution
intended to be level and uniform from
age Of entry Under any method pro
vision must be made for the yearl
increasing cost to the society of al
fording the protection.
Hence, the level and uniform rate
This, If adequate, is obtained b.
equalizing the yearly increasing cos
OF insurance. 1t is a rate exceedin
the cost of the insurance to the soc
ETY. in the earlier years Of the certif
Gates existence. The excess is Gale
reserve. And this reserve, improve
at per cent compound interest, Wi
provide for the later years, when I'll
annual contribution under the leve
rate is less than the current cost.
This is sometimes illustrated by tn
use of a diagram such as the follow
ing: