Page 4 Advertisements Column 2

Timaru Herald, Volume XLII, Issue 3456, 26 October 1885, Page 4

npHE EQUITABLE LIFE ASSURANCE SOCIETY OF THE • UNITED STATES J- AND THE AUSTRALIAN MUTUAL PROVIDENT SOCIETY. _ In the Lyttelton Times of Oct. 22nd appears an attack on the Equitable Life of the United States, which for misrepresentation we suppose is without rival m the anriala of Life Assurance. We nsk the public to compare each statement with the reply, and then to decide for themselves if what we assert is true, namely, that a Better system op HFB assurance is BBINO Ofpbeed To THB PITBtIC BY THE EQUITABLE. A verdict m the affirmative •» already being given by the public, and as a result the A M.P.S. not only fl-d it extremely difficult to obtain new business, but find their old policies "lapsing" and filtering through their books. Even under these circumstances, a Society like the A.M.P.S. is not justified m issuing wrong statements and unfair comparisons, which do not m the least alter the main facts aa.realised and claimed by the Equitable, viz., that our paid results are 40 PBB cent better ik cash than the A.M.P.S. And m addition offer (what is so valuable to men of business) a terminable period against premium payable to life's end. It is urged, and truly by the advocates of tho A.M.P.S., that if the assured had died m the early period be would have received a- bonus from tho A.M.P.S. and only the face value "f tlie policy from Equitable ; but no business man will assert that such a bonus is m any way equivalent to the cost and the probability of receiving it. The Australian Mutual, which formerly conducted its criticisms with moderation, begins it* attack by stating that the RATESof PREMIUM " may be said to be FAIRLY EQUaIj." Now we will show what are the facts : — At age 25 tho A.M.P.S. Collect, nay, £7£ per cent PER ANNUM More than the Equitable. »30 „ £7 „ „ „ ..33 „ *5 „ „ „ .. .40 „ £2i „ „ „ With these figures before him, any business man would arrive at the conclusion thut if the Equifable were to collect 21 per cent to 7t per cent per annum more than they do, the results of their improved systsm of management would be more apparent still. The next comparison given is rate per cent of expenses on premiums received. . Evvry " man of business" is aware that m the above comparison the rate of new business mu-t bo taken into consideration. Now, ihe proportion of new premiums to the total premiums on policies m force m the A.M.P. was 12i per cent, whereas' the proportion of new business m the Equitable was 29fc per cent m 1883. Assuming that the A.M.P. had transacted the same proportion of new business as the Equitablo, their expenses would have been' 21 6 instead of 14 per cent. This was the comparison m 1883. In 1884 the A.M.P.S. expenses increased 2- per cent (vide page 22 86th Annual Report), while the Kquitable, with a largely increased new business, only increased 0.6 per cent. Quoting the words of tlie Chairman of the A.M.P. at the 36th Meeting (vide page 8) : " In annual division of profits must ceeate a QEEATEtt EXPENSE THAN WAB NECEaSAEX WHEN TYB DIVIDED BVBttX FIVE TEARS " From the same report it will be fou^ d that m 1683 the A.M.P.S. hud saved out of the year's receipts £576,129, while m 1884 this amount, with an increasing revenue and £B<>>,ooi> of surrendered and forfeited policies, onU amounted to £446,753, a difference of £128,376 (m one year) of their old (but now discarded) system of 5 year tontine. The following INCORRECT STATEMENTS m reference to the Equitable nre made by: the Australian Mutual Provident Society : — STATEMENT OF A.MPS. CORRECTION OF EQUITABLE. Policy-holders m the Equitable Society are THEtIE CONDITIONS ARE NOT prohibited from travelling m any country OURS, and the only source from which they (Australia excepted) situated within 25 de- could have been obtained must be the heated grees of the Hquator. The policy will be imagination of the A.M.P.'S officers. Copies void if the life assured engage m blasting, of tho conditions of our policies can be obmining, or the manufacture, handling or taiued from any Agent, transportation of inflammable or explosive substances, or if he commit suicide, or die m consequence of a duel, or of the viplntion of law within three years of the date of the policy. A Policy m the Equitablo Socioty cannot EVERY ANNUAL BONUS CAN be surrendered for cash under any circum- be Surrendered for Cash, and all Tontine stances. a nd semi-Tontine Policies have fix options amongst them, being the right to either surrender the bonus for cash, or take the cash value of the whole policy. A Policy m the Equitable Society will bo- Under the most severe policies issued by rome void if the premium be not paid on the Equitable, the Solid tontine, one month's or before tlie day on which it becomes due, notice and one month's grace is given, and a policy becoming void cannot be reinstated under any circamst ncex. When a policy which has been m force for three years becomes ovprduo the Society will issuo a paid-up policy without participalion m the profits for such an amount as the value of the forfeited policy will purchase. A Policy-holder m the Equitable Society We do not lend on our policies, the old cannot obtain a loan on the security of bis system of Loan and Assurance (more loan policy. than assurance) being considered the very antithesis of Life Assurance. We aim at giving assurance which does assure, aod terminates. The bonuses m the Equitable Society must THE BONUS IN THE EQUITABLE be allowed to remain as an addition to the CAN BE SURRENDERED FOR CASH, policies, or be applied m payment of premiums. The Equitable Society is prohibited by law THE SOCIETY IS NOT PROHIBITED from investing its funds m these colonies. FROM INVESTING IN NEW ZEALAND. The ljcal Directors aro empowered to invest moneys here as long as they can obtain a good rate of interest, and to-day the amount invested is larger m proportion to its liabilities than tho Australian Mutual r'rovident. The Equitable Society is a Joint Stock Com- It is true that the Directors, m accordance pany, and none but holders of stock are with the law of New York passed m 1853, eligible for the office of Directors. which compels every Life Company i o have a paid up capital of £20,000 before it can commence business, subscribed this sum ; but the law also provides that they shall not receive more than 7 per cent per annum up >n this capital, and as this rate of interest has been actually earned upon it, the policy-holders have had the great security it afforded m the infancy of the Society without any charge whatever. The starting of the A.M.P. was effected m a much more costly manner, as may be wen by a reference to the extraordinary bonuses paid from time to time to the first policy-holders, who, m consideration of their giving the Society a etart, were ullowerl two-thirds <jf the WHOLB BDBPLUa OF THB FIEBT Qr/INQEJKIDIT, A3JD HAVB ONTISUBD T'> SECBIVE LiEOER BONTJ9E3 TpAK THBX OTHERWISE WOULD HAVE BBBN ENTITLED TO. TIIESE BXCE33IVB BOSU3E3 HAVE FO* TEARS PAST BEEN HELD OUT AS AN I>DCCEMENT TO ' THE PUBLIC TO INdCBB WITH TUB COHPAN? ! ! ! We now give to the public a comparison of the results of Policies paid by both Societies, and hot estimates. ORDINARY LIFE POLICIES. Yearn Age at Amount ; Annu.l m y^j Cash Value Old. entry. asjured. premium. p p™ id bonus. of Poll °y- £ £8. d. Ji a. a. £a. d. £ s. rl. ! Equitable of U.S. 15 41 2000 64, 18 4 1 973 15 0 5«3 12 0 1106 3 0* I A.M.P 15 | 38 2000 fiO 13 4 1 910 ■ 0 0 407 0 0 64H 0 Of • Or cease payment for ever, with a paid-up polioy for J22052. t Or cease payment for 6| years, when all bonuses will bo lost. Any paid policy of the Equitable exceeds m as great a ratio ANY paid policy lexeept promoters) of the A.M.P. In comparing BE3PLTB OF paid policies m both societies, we have taken the best paid results (n kindness they dare not extend to so powerful and attractive an office as the f quitable) of the A.M.P.S. under their 5-year Bonus System which, having unwisely discarded, they cannot possibly equal m the future, as admitted by their Chairman, (Vido.pago 8, 36th ( Annual Report ) ] LET it ONCE poe ALL BE UNDERSTOOD tint there are many s urces of profit m assurance, as practised by the Kquitable, which are overlooked, and not availed of by tho other offices. Amongst them are the following : — I. The not isxui >g SMALL POLICIES, THE COST OF -WHICH BXCEEDS THE PREMIUM BECEIVED. 11. The amount reserved and divided at the end of the period selected by the assured is much larger (as will be plain to every person of ordinary ability) than m ofEces which give those who die early a bonus m addition to the turn assured. 111. The sia£f of clerks for the loans on policy branch and the overdue premium branch are dispensed with. TV. The saving (which with steadily increasing premium income becomes greater yearly) of every policy holder collecting his own premium, i.e., paying his own premium into the bank, thus allowing tho saving of office rents, resident agents, Directors, and m addition paying heavy commission to canvassers. V. Under-av rage lives which require loading ore declined by the Equitablo. Unmarried women, married women without children, sailors, Ac, are not accepted by the Fquitable. VI. With the proposal tho premium i» taken, thus saving the thousands of pounds which are squandered by other offices m medical fees, as shown m reports under' heading of accepted cases, but not complbtbd. (Thus the Mutual Provident threw away £2000 m this way alone. Vide last report.) In conclusion, our opponents cannot hurt the Equitable. To quote the " Insurance j World " (London Citizen) : — " Its enemios do better for it than its friends " It is so sound that it can stand the most searching scrutiny. The wild attacks (and what could be more wild than the A.M.P.S. attack) of its rivals point attention to it, with the result that people aro | made to think about it, and so investigate it, an I convince themselves that it is a superbly strong institution, and that they ought at once to insure their lives m it. It would not pay the Equitable to be let alone. _ ' . In the first six months of this year the Equitable's business exceeded that of the corresponding period last year. In oss dat, 28th April, I*Bs, at our Head Office a quarter of a Million Pounds Sterling (£20,000) of Assurance was received. Wo will refrain from attacking tbo Australian Mutual Provident, but Assurers will find as an inducement for them to Assure, on page 10 of A.M. P.'s Prospectus, issued m lH7f>, the following examples, and alongside tho Bonuses allotted to Policies taken from their Quinquennial Report, 1884 : — • THE VALUE OF A.M.P.9. INDUCEMENTS. Whole Life Policy, pag» 10, 187fl Report of A.M.P.S— . ' 1876. J 'lßß4. Number of years m force 24 years 9 months. 25 years Sum Assured £250 £00 Increa-cf) by Bonus £*03 £3*6 1876. . 1884. Number of years m force ... 16 years 10 months 15 jears Sum Assured ... (doubled) £1000 £1000 : Increased bo Bonus Additions to £20 -7,14a 4d £148fi , If the past 8 ybabs havb pbodpohd this BEDtrcTtoH wnvr will the nkxt 8. teatis j pboducb with increasing COMPBTITIOH l» J]« vestm KNTg and a largely increased expenditure (according to the Chairman of the A.M.P.S.) necessary to an annual division of profits. EQUITABLE LIFE ASSURANCE SOCIETY OF TNITKD STATES. ASSETS ... £12,117,000 OASFI SURPLUS ... £2,839,000 ANNUAL INCOME ... £3,181,000. : HEW ZEALAND LOCAL DIRECTORS:— (With power to issue Policies and Pay Claims.) Hod. Sir Frederick Whitaker K.(J MG-, Dr J. logan Campbell. Hon. James Williamson, M.L.O. Chxiatehurch, Office— 232, Armagh street west UEOROE THORNE, Joif., Manager 1 . P.S.— No rtoubt the above ought and will " CARRY CONVICTION TO THM MTND OP ANY IMPARTIAL KNQUIBBR AS TO THE RKLATIVJffi MERITS OP THE TWO OFFICES." W. D. CRAIG, LOCAL AGENT. 10 -26 4625