222 BUSINESS OF LIFE INSURANCE

The net guaranteed saving then amounting to    $1,518.62

OPTIONS THIRTEEN YEARS FROM DATE.

Guaranteed reserve on deposit with

State of Indiana    $2,579.75

Draw amount of surplus accumulations in cash estimated after paying loan

$797.50 and interest to be   634.81

Total estimated cash value   $3,214.50

SECOND OPTION.

Draw surplus as above    $634.81

Receive paid-up policy    5,000.00

Total cash surplus and paid-up insur-

ance    $5,634.81

The preliminary term device was introduced in the United States by a regular company in 1894. The company had its headquarters in Iowa. The policies had scarcely been printed when a life insurance agent living in Iowa devised a scheme as follows :

A ten year investment, guaranteed value. .$300 Estimated surplus    300

Total returns    $600