Year: 1872

Universal Life Insurance Company.


A new cause Of complaint against life
insurance Is beginning to find voice in
the expressions of dissatisfaction heard
on every side with regard to diminished
dividends. These complaints are GER
tainly not unfounded or unreasonable.
Many of the companies which whilom
ran a thriving business, as regards the
issue of policies, on the strength of
promised dividends from thirty to fifty
per cent, are now compelled to confess
their utter inability to declare any div
idends ut all; while even the oldest and
obliged to resort to new methods of d.
viding surplus, as a cloak to cover up
their deficiency of means to make good
their previous promises.


What "dividends" have been grow
ing small by degrees and disagreeably
less of late years, is, we believe, lsuffi-
ciently notorious to leave little room
for question. The helpless holders of
policies in these companies have already
learned the lesson of their disappoint-
ment; and taking counsel of their fears
are in q maze of wonder and alarm as
they compare the present with the past,
and begin to realize the wreck of their
hopes as to the future. The best evil
dence of this is to be found in the enor-
nous and unprecedented number of
"lapsesn shown in the report of the
COM panies for the past year (l871,) and
in the increased amount Of new business
transacted.


A very notable exception to this gen.
eral rule is to be found in the statement
of the Universal Life Insurance compa-
nv. published on the last page Of the
cover of our present number. 1t is GER
tainly just cause for congratulation on
the part of the management, that while
with the great majorities OF companies
the business of 1871 has fallen short OF
that Of 1870, that of the Universal has
increased nearly fifty per CENT; nay
more-its actual increase has been great
er than that of any other company In
the country. This, however, is not the
only point of interest shown by the
statement in question. The company
in it's stability has more than kept pace
with its increase of business, one-third
of it's assets being o surplus over the
requirements for solvency under the
rid exaction of four and one-ha!f per
cent. valuation, as demanded by the
laws of New York. Since its organiza-
ton this company has issued nearly
fifteen thousand policies at rates vary
ing from twenty to thirty per cent.
lower than the mutual companies; mas
paid nearly seven hundred Thousand
dollars to the representatives OF deceas-
ed policyholders, and yet stands to-day
as regards all the elements of strength
and solvency in a far better condition
than very many mutual companies OF
it's own or o greater age, which have re-
ceived one-third more in premiums on
q similar amount of business. Can
there be better certificate than this of
the excellence of its plans, or the spirit
and integrity of its management?


Surely it is natural that in the present
temper of the public mind regarding
the diminishing "dividends" by mutual
companies, and the consequent olstrust
in the decreasing business of those com.
panies, that agents of ability and sound
besiness views should be attracted to-
wards company which presents such
solid claims in Its plans and manage
ment for public recognition and sup
port. And SUCH we are grained 10
learn, is the case, and which we ven-
ture to predict will be abundantly ver-
flied at the close of the present year by
q satisfactory increase in new business
over that of 1871; a gratifying earnest OF
this result being already obtained in
the fact, that the business transacted
during the first three months of the
present wear is more than double that
for the corresponding period of last
year.


The recent action Of the company in
granting to the policyholders share in
the profits of the business, Is just what
might be expected fiom the character OF
the management, and entirely dissi-
pates the only argument ever urged OF
any weight against the stock plan,
namely, that life insurance, being en-
tirely unselfish in its nature and objects,
and the offspring Of benevolence and
duty, was not a fit subject for monetary
speculation, and therefore should be
supplied to the public without any pro-
fit' to those engaged in the conduct of
the business beyond fair living salary.
Although dissenting entirely from this
view of the question ourselves, we are
fully aware that it Is pretty generally
accepted as correct by the majority OF
insurers, and the manner of the univer-
sal certainly show stheir wisdom IN
meeting the question in the only way
in which a prejudice is ever successful
ly met-succumbing to it.


In the method of. division adopted by
the company great fairness and liberal
ity are shown toward the insured. Each
policyholder is treated as quasi stock
holder to the amount of one annual
premium on his policy, and OH this
amount he will receive of each profit
dividend declared, the same share that
O stockholder would receive on an equal
amount of capital stock. These divi-
dends, in view Of greatly reduced pre-
miums charged, must necessarily be
small; but their chief value, in our
opinion, lies in the fact that no profit
can be received by the stockholders
which Is not participated in by the pol
thus necessitating on the
part of the management the greatest
possible care and economy in the COLI
duct of the business. In conclusion,
we will add that we know of no COM
pany that offers more attractive fea-
lures both to the agent and the intend
ing insurer than that under review.
It's unLeniable solvency, the rapidly in
creasing popularity of its plans, its low
rates of premium with participation In
profits, and though last, not least, the
waneing favor with which the so-called
mutual" system is regarded by the
public. all combine to convince US that
there is no other company which pre-
sents so many elements of success In
the hands of Intelligent and energetic
Agents az the Universal. TO all such
that apply to the managers, we can in
sure courteous liberal treatment.


..- JOHN G.. CHILES,


General Agent.