Page Ten 



No inaxiinuin 'djrv a\ which insurance may bo taken out 

 under the <i;roup phm is prescribed. There is a minimum age 

 limit of 14 years. 



Among the questions asked by persons for the first time 

 considering the subject of insurance is: ''Do 'participating/ 

 or dividend-paying, companies offer moie advantages than 

 companies which do not pay dividends to their insured, but 

 guarantee their rates to them?" We quote Best's Life In- 

 surance Reports, 15th Annual Edition (1920), on the differ- 

 ence between participating and guaranteed cost companies: 



"Dividends (so-called) are important in determining the 

 relative desirability of participating or 'mutual' policies in 

 different companies. It should be remembered, however, 

 that the 'dividends' are merely retuins to the policy-holder 

 of the portion of his own premium payments made in the 

 past which proves not to have been needed to provide the 

 protection, pay the expenses and put up the reserve, and 

 of earnings on the reserve in excess of the rate of interest 

 used in computing it. They are not similar to dividends on 

 shares in a stock corporation and do not represent profits 

 in the company's business. 



"In comparing the dividends paid by different companies 

 on the same form of policy, applicants should deduct the 

 same from the premiums paid and compare the net cost; 

 they should also take into account the relative surrender 

 values allowed and the greater or less security afforded by the 

 rate of interest assumed in computing the reserve as well as 

 the largei' or smaller amount held as a reserve to protect 

 all policies issued b}^ the company. 



"In effect the proposal of any mutual comj^any to those 

 whom it seeks to insure is this: 'Let us for our nuitual pro- 

 tcM'tion eacli pay in as nnich jiixMiMiini as the moitality tables 



