Or again, in case of a
depleted membership from any cause, the assessment company would need
funds in hand to supply any deficiency in the proceeds of an assessment
below the face of the maturing obligation. For either purpose a
comparatively small sum is required, while the level premium company
must pile up tens of millions of overpayments to cover the requirements
of the principle on which it conducts its business. It is susceptible of
mathematical demonstration that one or two millions of dollars of
reserve is adequate to perpetuate any well conducted assessment company
for all time, however large or small it may be, while the spectacle is
presented to us of level premium life companies holding fifty to one
hundred millions of accumulations belonging to their policy holders,
from which no possible benefit, in most cases, will ever accrue to them.
We therefore emphasize the proposition that a system of insurance that
relieves the insurer of one half the pecuniary burden he is compelled to
bear under the level premium system, is one that is worthy of fair
treatment on the part of a discriminating public, and that the people
cannot afford to have impeded in its usefulness by ignorance, prejudice,
or moneyed monopolies.
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