New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-09
TO INSURE 10000 POLICE
Equitable Life will Assume
$12,0o0,000 Risk.
PREMIUM EQUAL TO ALL
Prediction Made That Nation
May Follow Similar Scheme
to Protect Workers.

What is said to be the biggest deal in the
history of life insurance has all but been
completed. The Equitable Life Assurance
Society has made arrangements whereby
the ten thousand men composing the New
York Police Department will be insured at
an aggregate Of between 100000 and sl5,-
0oo, 000 The premiums. which will amount
to about $4,000 a year, will be paid by the
men themselves, the cost Of insurance
being about $15 the $1,000 with the limit
5000 II is expected. however, that the
men will take out policies equalling one
years salary.
Under ordinary circumstances the amount
of premium advances with the age of the
applicant, but under the arrangements TO
be made, the force being a body of picked
men, always being recruited by younger
blood. the cost will remain stationary. An
other feature Of the contracts Will be that
the policies will not lapse with the loss Of
q place. The contracts are TO be made
with ore or another Of the police benevo-
lent associations, hence the department
cannot interfere with the continuance of
membership
The policies are TO DO written on groups
OF men; that Is blanket policy will cover
the men Of the Traffic Squad. or OF the
Lieutenants Association, and a separate
certificate will be issued TO each man.
showing the amount for which he is in
sured under the general policy.
AS the mems organizations are per-
manent it will make no difference whether
a policyholdor leaves the department or
not. unless he be degraded and dropped
ba roll gft no
10 which he may belong
II is estimated that the annual premium
will be about $4,000. upon which the divi-
6ends will amount to about 20 per cent, or
5000 This will give the police organiza-
tons a handsome annual return, which
may be used to reduce the annual premium
Of the individuals. The insuring company,
however has signifed its willingness 10
permit tho sum TO remain with II at per
cent compound interest. Taking five years
ct this rate If the dividends remain at
interest the organizations will have a
capital Of about $4,000 on the $4,000 pre-
MUM basis.
With this large sum multiplying each
year the organizations will become ex-
tremely powerful financially. and the
amount Of good that might be done by
them is limited only by the imagination
IN fact, so vast an influence is concerned
in the question Of the disposition of the
dividends that the men heading the move
nent which brought about the contracts
have sought the opinions of financiers.
grave moment 10 thousands Of men in
sured in various fraternal organizations. 1t
would seem the present deal would be a
precedent for the formation OF organiza-
lions similar to those in the New York Po-
lice Department. and which may become
insured under the group system. Insur-
ance men predict that the working out of
the plan will revolutionize the business;
that not only will groups of men in munich
pal departments take out such insurance.
but ultimately states and nations will adopt
the scheme TO take care OF industrial work.
ers on lines in vogue in some OF the coun-
tries In Europe.
The bringing about Of the police contract
vas the work Of Louis Lichtenstein, an
expert in group insurance.