228 BUSINESS OF LIFE INSURANCE

insurance policies must always be at a disadvantage, unless a fair allowance is made for the value of the protection. This is often lost sight of, and, in fact, such a showing is frequently made of the results of endowment policies as may cause them to be considered as investments pure and simple. Sometimes the insurance is spoken of as being "thrown in"; usually the in-vestment returns are cited "besides the insurance." All this is unfortunate, both because it creates a wholly erroneous impression and also because it cheapens in men's estimation the value of life insurance.

These returns of from 3 per cent., annually compounded to perhaps 4 per cent, "besides the insurance," are of the past. They belong to a period when the companies realised nearer 6 per cent. than 4 per cent., as at present. Also to a period when forfeitures were acquiesced in by the insured and yielded large apparent gains. The future holds forth no such promises; if when 6 per cent. was earned, only 4 per cent, or less could be earned net, "besides the insurance," when only 4 per cent. or less is earned, net investment returns will be 2 per cent. or less.

The tontine delusion, i. e., that large gains would be reaped from forfeitures, fostered the view that life insurance policies might be desirable investments for investment's sake, not