CHAPTER, XXIII
LIFE INSURANCE AS AN INVESTMENT

THE gross impropriety, amounting to fraud, of the so-called "investment bonds," issued first by certain Iowa companies, has been pointed out; but as a preparation for considering life insurance as an investment and also because these contracts were held forth as desirable on investment grounds alone, it will be worth while to analyse them more thoroughly. The main features were:

Benefits to the insured, life insurance of $500 the first five years and $1,000 the second five and the return of $1,000 guaranteed—just the sum paid in—plus earnings, at the end of ten years.

The benefits to stockholders, including pro-vision for expense and mortuary cost, were the whole of the first year's premium and about 7 per cent. from each subsequent premium.

The endowment benefit at the end of ten years, i. e., the return of the premiums paid, represents all that the investment yields, if the

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