TONTINE INSURANCE.

Auckland Star, Volume XXXIX, Issue 168, 15 July 1908, Page 8

TONTINE INSURANCE.

(To the Editor.) Sir, —In the interests of the public and especially of working men desirous of effecting insurance on their lives, I ask you to ■publish the following statement of my-position-re-a-20-year tontine policy in the Colonial Mutual Life Assurance Society, Limited: In the month of May, ISBS, I was canvassed on behalf of the above Society by one of its agents to take up one of these so-called wonderfully good assurance policies; but having at that time already a whole life policy in the Mutual Life Assurance Company, I declined. Again and again this gentleman called and persisted in showing mc both by comparative figures and certain representations how very much ■better this tontine policy was over all other policies, especially over a whole life one. These advantages I understood to be that for the 20 years it gave the same results at death as an ordinary whole life policy without profits, but further gave to the person who survived 20 years the double advantage of having been protected during that period, and then several good options which the company would then give, among them being tho following options: First, to continue paying the same rate of premiums as hitherto, and have added to the amount assxired, £250, the whole amount of the premiums paid in, and thus make it a whole life policy pjxyable at death; or take up a paid-up policy, the amount to be ascertained; or to withdraw from the company and receive the whole of the premiums paid, plus interest, then estimated to make C per cent exactly oil the same principle as a savings bank account. These conditions were undoubtedly so much better than my other assurances that on the 9th of June, 18SS, I signed a proposal, clearly understanding that the policy would secure the above-named advantages, and allowed my other whole life policy to lapse. Naturally, when my policy was issuea, a read it through, and not having then the correct judgment that 20 years would now give, I received it in all good faith, and for 20 years have paid premiums, oftentimes, in the beginning, sacrificing one's many needs to keep the payments good. Now, at the expiration of the 20 year.;, the oflicer informs mc that it was a whole life policy from the beginning, and that I am entitled to no cash, but a few paltry pounds called a bonus. They offer mo after 20 years, and paying in £ 124 3/4 as premiums, the following: To continue a whole life policy payable at death, for £250, plus thereto the sum of £20. making a total of £276, withcut further profits, and reduce the yearly premiums by £ 1 2/8: or a paid-up policy for £ 140, or a surrender of policy for £71 7/. These options do not accord with the basis on which I understood the assurance was first made. Instead of having the .premiums added to the original sum. only £2C> it offered, and instead of drawing the whole of the premiums, plus the interest earned, one is offered the magnificent sum of £71 "I, and no further claim upon the company. Further, the chief secretary coolly says that because I did not die during the 20----year period, hundreds of other members have, and consequently a considerable portion of my premiums, nearly £53, has been taken to pay the representatives of the deceased ones; and then, to help the company further, they also keep all profits. Comment upon this position is needless. But let mc here say, if that is so, the system amounts to a gamble with the lives of the people, practically asking a man to back himself to die in order to secure the greatest advantage. I have in my possession a number of letters from unfortunate policy-holders, some of which expired a few years ago, some recently, and others to yet expire, and they, without exception, all make the same, or tantamount to the same, representations and resultant anticipations, as I have previously mentioned, and in each case that has expired come out on the losing side. The facts herein written I emphatically declare to be true, and consider this is a matter that concerns the working men of Auckland, for they are largely the people who under small or uncertain wage, are compelled to be just to their wives, children and themselves, and make some provision for their protection, and to do this honestly oftentimes deny themselves many luxuries in life to keep these premiums up, and then, through their own temperate habits and carefulness of good health, lose that which they have been looking forward to enjoy in after years. I think that some action should be taken hy the New Zealand Government in such matters, and that the policyholders should unite to have it brought before our Premier and members of the House. —I am, etc,, THOS. J. McIVOR. 198, Karangahapc-road, Auckland.