The Business of Life Insurance

ot very long ago, institutions which furnished protection on this plan transacted fully one-half the entire life insurance of the United States; but of late the decline of this business has been marked. The errors of the plan have shown themselves in actual practice. Some of the companies have reorganised as regular insurance companies on the level premium basis, not without hardships to their poli- cyholders; others, being unable or unwilling to reform their methods, have failed. Yet others still continue upon the old plans, being given a longer lease of life than their fellows because of one or other extraneous interference with the normal operation of the plan. ASSESSMENT LIFE INSURANCE 23 Among the institutions which have longest been able to withstand the evil effects of the erroneous plan are the fraternal insurance societies, although they were the first to introduce it. This is due to two things, viz.: the extraordinary economy and efficiency of their democratic system of management, and the vitality which the loyalty and strong interest of their individual members give to them. On this account, also, they find it easier to pass over to sound plans than have assessment societies, which were conducted more nearly like business companies. The fraternal societies as a whole are now in the midst of such readjustment,, some just entering upon it, some preparing to do so, and others just emerging. In spite of this, they are each year showing a large increa...