Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-08-16
Long lite and Lilo In.uranes.


1t Is n common error to suppose that
the holder of a life insurance policy in
a mutual company, who pays his
premiums continuously during life. may
pay in more money II he lives to great
age than his estate or he himself will
ultimately receive. This could happen
onlyNin rare instances and only In the
case Of certain peculiar forms of policy.
On the 14th of January. 1857. a young
clergyman. Rev. Aaron E. Ballard, Jr.,
SO years OF age. insured his life for
81 500 In The Mutual Life. The policy
was issued on the ordinary life plan at
a semi-annual premium of SELLS. the
premiums to be paid continuously until
death. Mr.. Ballard attained the age
of 96 on the 9th day of December. 1871 :.
making the seventeenth policyholder
who has lived to attain that age or
more.
The mortality table upon. which our
premium rates are basel assumes that
the insured will not Iiveibeyond the at !
tanned age OF 9G. and saccorG:ngly the
company is always prepared to pay the
policy at that age, assuming that the
insurance has not previously matured
by death. To that end the accumulated
reserve necessarily equals the face
amount Of the insurance at age 96, and
1t is the practice of The Mutual Life
to pay the policy in full at that time
IL payment Is desired Mr. Ballard.
however, had taken out this insurance
as provision for his own old age as
we'll as for the protection of his fam
lily. and. finding himself still young and
active at 96. he preferred to let his in
surance go on accommodating for the
time being. Accordingly he continued
paying his premiums every six months
until April 1, 1918. altho he had at
that date passed the age Of 81 years.
At the solicitation Of the company he
then consented to surrender his policy
for its cash value, young as he was!
We have said that the reserve of
life insurance policy equals the face
amount at So. This applies also to the
reserve Of any existing paid-up addi
tons. II the policy is continued in
force after attaining that age. the an
nual dividend, or refund, will consist
thereafter of a return Of the premium
paid plus interest on the full amount OF
the insurance, including dividend addi-
tons. The total premiums paid by Mr..
Ballard on this $500 policy during
sixty one and one-half years amounted
to $2,605.14. but the dividend additions
to the policy during that time footed
up $3.110.18. making the total cash
value which he received at ,the time
of surrender, $4.610.1s. or more than
three times the original face amount of
the policy, and nearly $4,000 more than
the total premiums paid! It will be
kept in mind also that the policyholder
had insurance protection during sixty
one and one-half. years. ranging from
$500 in the first year to more than
three times that amount in the last
year. When he surrendered his insur-
ance Mr.. Ballard was s7A years of age.
Rev. Aaron E. Ballard is we'll known
in the state of New Jersey and to thou
sands Of people in other parts of the
country. He has been active in bust
ness for many years and is president of
the Ocean Grove Association, the cor
poration known to many as the Town
of Ocean Grove noted summer resort
on the Jersey shore. H. w. Shove G.
Son, District Managers The Mutual
Life Insurance Company of New York.
Marshalltown, Iowa, Room 800 Masonic
Temple. 81