" This is not to be wondered at when the applicant
for a 10-year endowment policy sees at a glance that he must pay, in
the gross, more than is returned unless he should die in the interim,
in which case a plain "life" or "term" policy would have answered the
purpose. Under the new system of assessing expenses one form is as
desirable as another, from the standpoint of the insured or the
company.
The new premium for the 10-year endowment policy, $89.71, commends
itself at once to the applicant, who can easily see that his total
outlay must fall short of the amount ultimately to be realized, of
course, disregarding interest and probable dividends in both cases.
In discounting the future expense contributions I have not taken the
chances of dying into account. Hence the expense reserve in any
instance applies only to that individual case, and, in the event of
death or surrender before the maturity of the policy, the amount of
the expense fund not used would naturally revert to the insured.
The scheme of expense assessment outlined above will doubtless be
pronounced impracticable by the majority of insurance men.
Such a far reaching reform is too much to hope for, at least in the
immediate future.
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