INSURANCE DECEPTION.

NZ Truth, Issue 58, 28 July 1906, Page 6

INSURANCE DECEPTION.

TO THE BDITOB.

Sir, — It is very interesting to read the glowing accounts given of the ar mount of dividends of 36 and 71 per cent, awarded insurers as . reversionary additions to the policies in a life insurance office ; . but what is. there in it ? It sounds all right, but it is "most misleading to ordinary mortals riot.wsil up in the twisting about of figures. For instance : you hold a paid up life insurance .policy for, say, £200 . (nothing more to payon it) , which, with bounses , amount to say £300.' That £300 rightly, belongs to the- insurer, but, owing to the class in which he was prompted to take it out, he is finable to draw it, and it has to remain with the company until he dies, with the very small bonus additions being added. That £300 is let out by the company at say 5 percent, (perhaps more), but at 5 per cent., it brings in a' profit of £15 per annum to the compam- Now, the poor insurer, to whom the money. rightly belongs, gets the handsome (?) interest by bonus, dividends of less than one and, a-halfi per cent., viz., about; £4 10 s per annum, and if he diraws his bonus, of less than one per cerit. The company thus reaps a clear profit out of .the insurer's money of some £10 iOs pe*r annum- Where : does the wonderful benefit to the insurer come in ? Is this just and fair? The insurance, having been paid up, the money, if it cannot be drawn, should be invested for the insurer's benefit. He should at least get Savings Bank interest. No wonder insurance companies. •• can build such palaces for business purposes, and pav such handsome dividends to shareholders. Young people be careful how you insure your lives, or you had better piit your money in the Saving's Bank'.— l- am, &c. . ■■ h.a.d>: r July 24, "03.. ; ,