Notes on Life Insurance, the Theory of Life Insurance Practically Explained; An Elementary Treatise on the Principles Governing Life Insurance, and Their Technical Application. Designed Especially for the Use of Colleges, Students and All
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ...serious depreciation though their certainty of payment remains unquestioned. Such a financial crisis is just the time when policy-holders, in need of cash, are most likely to demand surrender values from the company, thus not only reducing its premium income, but also forcing the sale of securities at less than their true value, and perhaps crippling the company. In such a case the persons exercising these options should properly not be allowed a greater proportion of the reserves on their policies than the company is able to realize on the true value of its securities sold to provide cash for retiring policy-holders. This matter, however, cannot be regulated by any set of rules, but depends on the amount of the company's assets, the character of its business and investments, and the form of its organization. Another consideration is more technical in character, and its importance is somewhat in dispute. When an insured man gets into poor health, or contracts some incurable disease, his insurance becomes of great value in his eyes, because he realizes that his death may be imminent, when the policy would perform its beneficent office; and such a man will make sacrifices to pay his premium and keep his policy in force. If, on the other hand, a man is in excellent health and the payment of a premium involves some hardship, he does not realize so fully the value of the insurance, and will not hesitate so much about letting the policy lapse. It is thus argued that if surrender values are very liberal the result would be as follows: practically all the lapses would be those of persons who were in good health and did not feel the need of insurance, very few who were in bad health leaving the company, so that the average vitality of the persons...
- Paperback | 50 pages
- 189 x 246 x 3mm | 109g
- 13 Sep 2013
- Illustrations, black and white