n the other hand, there has been a rapid
accretion of funds, in some instances to the amount of many millions of
dollars. The characteristics of a good company are security and
assurance at cost. It should sell, not policies merely, but assurance;
and it should not make a profit for the capitalist out of the widow and
orphan.

The policies issued by life companies vary in their form and nature. The
ordinary one is called the life policy, by which the company contracts
to pay, on the death of the assured, the sum named in the policy, to the
person in whose behalf the assurance is made.

In mutual (cash) companies, when the premium has been paid in full for
about sixteen years, judging from past experience, the policy-holder may
expect that his annual dividend on policy and additions will exceed the
annual premium, thus obviating the necessity of further payments to the
company, while his policy annually increases in amount for the remainder
of life. But, on the contrary, when the dividends have been anticipated,
as in the note system, by giving a note for part of the premium, the
policy-holder insuring in this way, although he may at first receive a
larger policy than he has the ability to pay for in cash, may lose the
chief benefit of life insurance. For should he become unable, either by
age, disease, or loss of property, to continue the payment of his
premiums, his policy must lapse, because there is no accumulation of
profits to his credit on which it can be continued.

In other forms of life policies, called "Non-forfeitable," premiums are
made payable in "one," "five," or "ten" annual payments. In all cash
companies, and in some of the note companies, after the specified number
of premiums have been paid, the policy-holder draws an annual dividend
in cash.

A further advantage arising from this plan is, that the policy-holder,
at any time after two annual payments have been made, is always entitled
to a "paid-up" policy for as many "fifths" or "tenths" of the sum
assured as he shall have paid annual premiums. For example: a
"five-annual-payment policy" for $10,000, on which three premiums had
been paid, would entitle the holder to a "paid-up policy" for $6,000; a
"ten-annual-payment policy" for $10,000, on which three payments had
been made, would entitle the holder to $3,000; and so on for any number
of payments and for any amount, in accordance with the face of the
policy.

Another form is denominated the E