The Republican journal. [volume] (Belfast, Me.) 1829-current, 1912-01-18
0OND ANNUAL REPORT OF
" Union Mutual Life Insurance Go.
PORTLAND,
PORTLAND, MAINE.

tributed it has been in comparatively small
amounts, and SO prodgous in helpfulness, scattered
as it has been over wide area and into thousands
of communities, that may we'll be amazed at
the benefcent work which Life Insurance is bring
ing to pass in the world.
Every man does not prosper. Some find business
crowded with gatherings and money elusive. Such
people at one time or another may be compelled to
abandon their policies either by necessity through
forgetfuness. For thirty -four years Union Mutual
policies have contained provision to safeguard the
interests of those thus unfortunate after premiums
for three full years have been paid in cash. by which
process much insurance has been kept valid and pay
ments made which would otherwise have been lost.
Known originally as the Maine Non Forfeiture Law,
the designation has gradually been omitted other
States have enacted similar laws SO that extended
insurance in event of lapse now stands as one of
the requirements in all States where standard policy
provisions have been set forth by Statute. Follow
ing this experience of nearly three and one-haf
decades, during which by the operation of this
helpful feature sos Claims covering 81, $685. $50 IS
have been paid, the Union Mutual finds itself
stronger than in the belief that extended in
surance is one of the most important and valuable
rights which Polcyholder can have. In 1911 81
such claims were paid, representing $4,000 Insur
under these cases is due to the unquestioned fact
that such payments likely to go to families
where want is pressing and necessity more
urgent, since lack of funds is the most common
cause which brings men to the point of abandoning
Policies.
In other reports the growing volume of loans
upon Policies has been deplored. The situation is
not lettering. The habit is spreading rather than
dinnin If Dol;o
whatever necessities may arise trivial though they
may be, and thus, most often for insufficient cause
a mortgage is placed upon the future happiness of
the family. Loans which made for the purpose
of meeting premiums, when no other means are
available are to be commended, but indiscriminate
borrowing because it is possible under the terms of
the Policy is an inadvisable procedure. While the
Company can readily make these advances on
count of the insurance, the harm lies, from the
standpoint of the Policyholder in taking that much
OF the protection away from the beneficiary, whose
later necessity for it is likely to surpass the require
ments of the present.
Taxation of premiums continues prominent as an
expense. Added to the already burdensome State
taxes is the corporation tax imposed recent years
by the Federal Government upon what is designat-
ed as net income, from which deduction is not per-
mtted of the item termed ''dvidends'' upon Poll
cies (which are really only returned unused pay
ments), the common of which msnomer
seems to have been responsible for the requirement
that they be included in the amount upon which the
tax is paid. While not of itself large it puts
further distinct factor upon the cost of transacting
the business.
During 1911 Monthly Income Policy was adopted,
containing original and attractive features, and the
number of policy forms was materially increased,
all of which should assist toward advancing future
business.
Pocyholders can help in the development of the
Company in two important ways-by suggesting
the names of people who ought to have policies and
mentioning who would make desirable agents
Cooperation of this character will be especially
welcomed by the management, and will go well
toward serving to promote the interests of this
mutual institution, in which all Polcyhoders should
have abiding interest.
With firm confidence in the future of the Union
Mutual Life Insurance Company the management
believes the outcome of the New Year will be to in
crease the prosperity and advance the standing
of this institution which represents so much that is
good in the ambitions of its Policyholders for pro-
lection and in the settlements with benefciaries
when the time of maturity comes.
Respectfully submitted,
FRED E. RICHARDS. President
NE