THE PROTECTIVE MUTUAL LIFE No. 242,215 INSURANCE COMPANY OF CHICAGO, ILLINOIS In Consideration of the payment of Two hundred sixty-eight----and- the receipt of which is hereby acknowledged, and of the payment of a like sum on or before the--first--day of ‒‒February in every year during the lifetime of -JOHN WILLIAMS of MILWAUKEE, WISCONSIN---(hereinafter called the Insured), and immediately upon receipt of this Policy and due proof of the death of the Insured, THE PROTECTIVE MUTUAL LIFE INSURANCE COMPANY (hereinafter called the Company) promises to pay at its Home Office the sum of TEN THOUSAND Dollars, less any unpaid premium or premiums to the end of the current policy year and any other indebtedness on account of this Policy, to -his wife,- --Jane Williams, Beneficiary, with reservation to the Insured of the right of revocation and change of Beneficiary. This Policy is issued by the Company and accepted by the parties in interest subject to the provisions stated on the consecutively numbered pages hereof which are hereby made a part of this contract. IN WITNESS WHEREOF the Company has by its President and Secretary executed this contract this -first --day of JB Hart President ORDINARY LIFE POLICY On the second page of the policy shown on page 395 appears the following table, which shows the options which the insured may elect in case he desires to discontinue the payment of premiums: NONFORFEITURE AND LOAN VALUES BASED UPON A POLICY OF $1000 FREE FROM INDEBTEDNESS AND WITHOUT DIVIDEND ADDITIONS Thus, if John Williams decides at the end of the tenth policy year that he does not wish to pay premiums any longer on this policy, he may make one of the following choices: (a) he may take the cash value of his policy (which is ten times the amount shown in the first column, since these figures are quoted for each $1000 of insurance) and thus receive $1460.10 in cash; (b) he may take a paid-up policy for $2890 ($289 × 10); or (c) he may take a term insurance policy for $10,000, which will insure him for a period of 13 yr. 20 da. The cash value is also the amount that the insured may borrow from the company on his policy. When such a loan is made the company holds the policy as security. If the borrower should die before the loan is paid, the company would deduct the amount loaned from the payment to the beneficiary. ORAL EXERCISES 1. Describe in your own words the principal features which distinguish the four leading types of life-insurance policies. 2. For how many years do premiums have to be paid on each of the following types of policies: 20-year endowment; 20-year limited-payment life; ordinary life; 5-year term? ee 3. In your own words discuss the meaning of the terms ୨,୧୧ reserve," surplus," and "dividend," as used in connection with life insurance. 4. What kind of policy is the one shown on page 395? Who is the beneficiary? the insured? What is the amount of the annual premium? If the insured should die, how much would the beneficiary receive? 5. A man aged 35 takes out an ordinary life policy for $5000 in the same company as the one which issued the policy shown on page 395. If he decides to discontinue paying premiums after the fifth annual premium is paid, how much paid-up insurance can he obtain ? The student should consult the table of nonforfeiture and loan values on page 396. 6. If the insured in Ex. 5 elected to take extended term insurance, for how long a period would he be insured? What amount would the beneficiary receive if he died within this period? 7. In Ex. 5 how large a sum may the insured borrow on his policy after fifteen annual premiums have been paid? EXERCISES 1. If the insured in the policy on page 395 had taken out a 20-payment policy for the same amount at the rates shown in the table on page 393 (age 35), how much more would his insurance have cost him in 10 yr., exclusive of dividends and interest? 2. If the insured in Ex. 1 should die just before the twelfth annual premium on his 20-payment policy was due, how much more would his beneficiary receive than had been paid for the insurance? 3. At the rates shown in the table on page 393, what annual premium must a man 45 yr. old pay on an ordinary life policy for $15,000? 4. At the rates shown in the table on page 393, a man on his 25th birthday took out an ordinary life policy for $5000; on his 35th birthday, a 20-year endowment policy for $6000; and on his 40th birthday a 20-payment life policy for $10,000. If. he died when he was 431 yr. old, how much more, exclusive of dividends and interest, did his heirs receive than he had paid the company? 5. At the rates shown in the table on page 393, a man took out a 20-payment life policy for $5000 on his 25th birthday, and died just before the 20th payment came due. During this period the company paid him $87.50 per $1000 of insurance in dividends, and these were used to reduce the premiums. How much more did his heirs receive than was paid in premiums? Using the table of rates given on page 393, find the annual premium on each of the following policies: AMOUNT OF $2000 320 rods, or 5280 feet =1 mile (mi.) City lots are generally measured in feet and decimals of a foot; farm land is often measured in rods. For the tables of measures in the metric system, see pages 137–138. SQUARE MEASURE 144 square inches (sq. in.)=1 square foot (sq. ft.) 9 square feet =1 square yard (sq. yd.) 30 square yards = 1 square rod (sq. rd.) = 640 acres 1 square mile (sq. mi.) In government surveys a square mile is generally called a section. CUBIC MEASURE 1728 cubic inches (cu. in.)=1 cubic foot (cu. ft.) 27 cubic feet=1 cubic yard (cu. yd.) 128 cubic feet =1 cord (cd.) A load of earth, gravel, sand, and so on is equivalent to 1 cu. yd. The perch, used in stonework and masonry, varies in different parts of the country, but an average equivalent is 243 cu. ft. WEIGHT 16 ounces (oz.)=1 pound (lb.) 100 pounds = 1 hundredweight (cwt.) 2000 pounds = 1 ton (T.) The long ton of 2240 lb. is used by the government in computing duties upon imports, and it is also used in wholesale transactions in certain mining products. |