The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1912-03-28
FINDS INCREASE NECESSARY
State Official in Lecture Being Used by
Order Shows Increase Of Rates Was
to Meet Demands for Furnishing
Good Insurance to Members.

Modern Woodmen of America
throughout the state arc getting copies
OF an address by State Insurance Com
missioner I'll. L. Ekern in which he
tells of the necessity Of increase in
rates. In the address the commissions
CT said:
The Modern Woodmen Of America
were absolutely compelled by the
facts to rerate The Mobile Bill, as
enacted in other states than Wiscon-
sin, would have compelled it to pro
vide reserve. The Mobile bill as
enacted in Wisconsin, required that
every society should find out how
much reserve it ought to have and
tell its members the situation Of the
society. This had already been done
in the Modern Woodmen and the
members who have read the reports
Of the society have been able to see
that it was only question Of time
before it would go the way of the
Odd Fellows and the United Workmen
and other societies which have failed
so disastrouslv
The Modern Woodmen have raised
their rates FIVE times The last raise
was in 1908 and since then the assess
ments have all the time increased.
They were eight in 1908, ten il 1909
anu 1910, and eleven ia 1911 Even
with the increased number of assess
monts, Illinois in 1911 paid in less than
il took out for death claims. livery
one knows that the old men in the So
ciety are paying much less than their
insurance costs and that this is made
up by the younger men. The society
faced the problem Of letting this con
dition get worse and worse until the
young men would refuse to come in
and those in the society would drop
out and the old men would be left to
to pay their own insurance; or by
taking hold of this now, helping out
the old men by a small burden dis
trbuted ever the younger members,
and by using the money now on hand,
amounting to $4o0 or $500 member,
to help out these old members. This
last plan was adopted with a plan of
putting the society on an adequate
correct basis according to the deaths
which it has experienced in the past.
In buying anything it is not SO
much question Of how much you pay
as what you get for your money. On
the ro-rating of the Modern Woodmen,
members get for their money more
than they ever had before The mem
ber who at age 90 last year paid $3.50
in eleven assessments Of 50 cents each
and had none of it saved up to his
credit will, under the new rates, pay
an assessment of SIS cents, amounting
to 5000 per year, out Of which there
will be saved to his credit something
over $500 as reserve after paying
the actual cost of the insurance
amounting to 1888. That was all the
insurance cost on the old plan, but
the young member cot no credit for
what he overpaid On the new plan
this over payment is saved mp every
year into a reserve which by the time
he is about IS amounts to half Of his
insurance and by the time he is l01 is
equal to the full amount of his insur-
apce. 1t is this reserve which is the
difference between the old plan and
the new. This reserve makes it posi-
bic for every man to pay the actual
cost of his own insurance, no matter
whether he is 20, so, is OF 100 years
old. By saving up this reserve you
have large amount of money really
belonging to the member and stand
ing to his credit which earns inter
est, and that interest goes to help pay
the cost Of the insurance Besides
this insurance on which the cost has to
be paid, instead Of being $1,000 GU a
$1,000 certificate, is only the differ
ence between the amount Of this re-
serve or credit and the face Of the
certificate. When the member dies,
this reserve is paid ia the widow
and enough more of the insurance
money Of the society to make up the
ST 600. It is only for this enough
more or the difference between the re-
serve and the face Of the certificate
that you have to pay the cost Of in
surance on the new plan Hence, the
member who joined at age 20 ana who
has reached about age 65 and has $500
>sof reserve or credit, only pays for $500
of insurance, and instead Of paying
about $32, pays only half Of that or
about SIG. When he gets some past
age 80, he has 5000 accumulated as
reserve or credit and he has only 500
worth Of insurance, for which he Is
charged about $35 instead sc $3.50
Which he would be charged OH the fall
$1,000 of insurance The samc ap-
pics to a man entering 1T any
other age.