dowment Policy, in which the amount assured is payable when the party attains a certain age, or at death, should he die before reaching that age. This policy is rapidly gaining favor, as it provides for the man himself in old age, or for his family in case of his death. It is also fast becoming a favorite form of investment. We can show instances where the policy-holders have received a surplus above all they have paid to the company, with compound interest at six per cent, and no charge whatever for expenses or cost of insurance meanwhile.
The Term Policy, as its name implies, is issued for a term of one or more years.
Policies are also issued on joint lives, payable at the death of the first of two or more parties named in the policy; and on survivorship, payable to a party named in case he survives another.
Some companies require all premiums to be paid in cash, while others take the note of the assured in part payment. These are denominated cash and note companies, and much difference of opinion exists as to their comparative merits.
The latter is at first sight an attractive system, and its advocates present many specious arguments in its favor. The friends of cash payments, however, contend that the note system is detrimental and delusive, from the fact that these notes are liable to assessment, and, in case of death, to be deducted from the amount assured; also that the notes accumulate as the years roll on, the interest growing annually larger, and the total cash payment consequently heavier, while the actual amount of assurance, that is, the difference between its nominal amount and the sum of the notes, steadily lessens; and thus a provision for one's family gradually changes into a burden upon one's self.
But whatever differences of opinion may exist as to the comparative value of various systems, few will deny the advantages which life assurance has conferred upon the public, especially in America, whose middle classes, ambitiously living up to their income, are rich mostly in their labor and their homesteads,—in their earnings rather than their savings; and whose wealthy classes are rich chiefly through the giddy uncertainties of speculation,—magnificent to-day, in ruins to-morrow. In a country like this, no one can estimate the amount of comfort secured by investment in life assurance. It is the one measure of thrift which remains to atone for our extravagance in living and recklessness in trade.
Henry Ward Beecher spoke wisely when he advised all men to seek life assurance. He says:—
"It is every man's duty to provide for his family. That provision must include its future contingent condition. That provision, in so far as it is material, men ordinarily seek to secure by their own accumulations and investments. But all these are uncertain. The man that is rich to-day, by causes beyond his reach is poor to-morrow. A war in China, a revolution in Europe, a rebellion in America, overrule ten thousand fortunes in every commercial community.
"But in life assurance there are no risks or contingencies. Other investments may fail. A house may burn down. Banks may break; and their stock be worthless. Bonds and mortgages may be seized for debt, and all property or evidences of property may fall into the bottomless gulf of bankruptcy. But money secured to your family by life assurance will go to them without fail or interruption, provided you have used due discretion in the selection of a sound and honorable assurance company. Of two courses, one of which may leave your family destitute, and the other of which assures them a comfortable support at your decease, can there be a doubt which is to be chosen? Can there be a doubt about duty?"
