THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES.

New Zealand Mail, Issue 978, 28 November 1890, Page 31

THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES.

* thoroughly good investment is offered tn the public in the shape of the Indemnity !? j of the Equitable Life Assurance Steiety of the United States. This Soctety •"the giant in Life Insurance and also the oricinator of those reforms in policy con. tracts which have made Life Insurance bo ‘polar. Its Indemnity Bond is attracting the attention of investors, both in the United States and Europe, and is worthy of olose investigation. The United States Review, an expert in ,U matters of Life Insurance writes as fol- .< lows regarding these Bonds “There are two propositions, one of which j, true of every business man. He is either , loaner for protit or is seeking to create a oo'mpetenoy. It is a well recognised fact that profitable investments which are secure ,re not at the present moment easily found. Nine out of ten things which are said to be first class aie environed with iome hazard which will make a prudent nun pause. The managers of the Equitable Life Assurance Society of the United States, aware of this fact, have, in order to meet the demands of both classes of wbioh we have spoken, formulated and Introduced a valuable form of contraot which is worthy of careful consideration. It is an indemnity bond in the broadest sense of the term, backed up, as it is, by £22,322,000, of assets, of which over £4,733,557 is surplus. It provides for old V age, if one lives so long, and in the event of early death it is a protection to one’s family At the end of the term named it will, if the holder so eleots, furnish him an income during the remainder of life and add to his estate the amount stipulated in the contract. Thus the most important contingencies of life, from a financial standpoint, are pro* vided for. •‘These bonds will unquestionably be very profitable. The only criterion which we have for the future is gathered fr»m the experience of the past. If a man purchases bank stock he does it in the faith of the

Knt condition of the bank, and of the ends which it has paid in the past.

Estimating from the experience of the last 20 years (a most reasonable basis) the Twenty-year Twenty-Payment Indemnity Bond for £IOOO, the premium for which is £SO per annum, will yield at maturity the following returns :

“Incase of death during the term of twenty years the amount of the bond will be paid at once. “These figures are worthy of careful examination at the hands of investors. If the results are compared with those of any first-class security, there cannot be a doubt sb, to which it is best to seleot. This is eenecially true if consideration is given to |he insurance features and other provisions of the contraot.

“There are other advantages of note. At the end of twenty years the holder of the bond, if he be then alive, has the * Extension Privilege' and the ‘lnterest Guarantee/ Under these provisions he can at that time eleot to leave the amount duo at maturity 1 with the Sooiety, In which case he will be allowed interest annually at the rate of 4 per oent. He has the privilege of withdrawing the principal at any date upon which the interest is due. He has the ad* ditional privilege of merging the entire pro* needs into an annuity for life, or if he be in good health he may convert the same into a policy payable at death upon which no further premiums will be required. This form of contract is incontestable after two years and non-forfeitable after three years for amount of the instalments paid.

“The managers of the Equitable have always kept abreast of the times. They follow the drift of public sentiment and have always ia their forms of contract endeavoured to meet it. They first introduced the incontestable feature; they removed restrictions in respect to travel, residence, and oconpation, and death claims were made payable upon the acceptance of satisfactory proofs of death. These were peat strides. But the greatest advances were made in the character of the policy and its adaptation to the needs of the holder. To protect one’s family, to avoid premium, paying in old age, and to secure a settlement which would give a fair return for the money expended was the problem whioh Wss met and solved by the Tontine policy ; and then came the Non-forfeitable Top. tme. ‘We have first the blade, then the *»r ’in these admirable contracts. But ‘the mil corp in the eapV is found in the Indetp* Wty Bppd. It is a, grand step, in advance, W“ the purpose of the society tq WqtiquG to hold that commanding piece, in JW bfflnt rank of life underwriting which it fIM SO honourably yyon and so long ftaantained. It was devised to meet the Wads ot the business man and to furnish a Drst-class investment for the capitalist. It does this beyond all question. It covers the ®ost important contingencies in life. It Words protection, investment, and, if need Income for a moderate outlay. Farther than this it is difficult to see how any life insurance company can go."

1,000 1,000 1,000 Amount of bond. t-O fcxS o o o Age at issue. to o o o ooo v Annual instalments. ooo £1000 1000 1000 Total amount paid in 20 years. £1,720 1,719 1 1,715 Cash return at maturity of bond.