6 BUSINESS OF LIFE INSURANCE

sured, itself putting up no stakes, but merely making good its losses out of the forfeited stakes of those of the insured who have not suffered loss and so cannot make claim, and out of its other funds if necessary. But in event of loss, it does not pay its obligation and also return the policyholder's stake, the premium which he has paid. Life insurance policies are, however, sometimes issued which do promise the return of the premiums paid if death occurs within a certain period, or even, much more rarely, whenever death may occur. In the former case, in addition to a larger premium, other conditions, such as proportionate returns in surrender value, are always less favorable; and in the latter case the premium is made much higher, so that additional interest accumulations offset this.

It is this feature, however, that the company is stakeholder, and not under obligations to re-turn the stake of the policyholder (i. e., retains in any event all premiums or all interest upon the funds or both), which makes insurance for the whole period of life, and especially by single premiums, possible, in spite of the fact that the death of the insured is certain in the end.

This may be more clearly seen if it is considered how certain to incur a total loss of his stake a man would be who would put up one thousand dollars against any stake you please,