AS AN INVESTMENT   227

funds earn 4 per cent. per annum and no more. That Is, on that basis, the insured exchanges for the insurance furnished, the entire interest upon his payments. In practice, the participation be-cause of interest over 4 per cent. and forfeitures and surrender charges, would yield some return, thus reducing the cost of the insurance by so much.

The height of absurdity was attained in connection with these contracts, when only 120 per cent. of the premiums paid was the amount pay-able at death. In effect the policyholder was giving up the interest on his investment in ex-change for this merely nominal protection.

The incidence of the expense and profit pro-visions in the contracts was an offence against common honesty, for on these ten-year investment undertakings it amounted to permitting the company to apply the first moneys received, as its profits, before it had performed its engagement at all.

But, had the incidence been fair and had the insurance been the face of the policy, instead of a less sum for much of the period, the amount of the provision would have been unfair at most ages. We have seen that the usual loading on ten-year endowment premiums seems to be unfair, especially at the younger ages.

As compared with investments which do not also embrace life insurance, investments in lif6