THE EVOLUTION OF POLICIES 205

life annuity of $100 and a paid-up life insurance of $1,000 are nearly of equal value.

Widows' annuity, giving an annuity to the widow during her widowhood (in event of her death, to their children during their minority), in event of the death of the husband, an annuity for ten years being paid in any case. This has so far been offered only by assessment societies. To compute proper rates of premium for all the contingencies, so as to satisfy the requirements of the legal reserve laws, would not be easy.

A contract to deliver fractional paid-up policies upon the payment of each premium. By one of the largest companies this is applied to a guaranteed interest bond only, and the first paid-up policy is delivered only upon the payment of the second annual premium, the second upon payment of the third annual premium, etc., two paid-up policies being delivered upon payment of the twentieth annual premium. Thus the company holds itself in position to forfeit one premium upon discontinuance. Another company applies this to limited premium policies, actually delivering one proportionate, fractional paid-up policy upon the payment of each premium. Under both plans it is agreed that in event of the death of the insured all the paid-up policies are to be delivered at once.