232 BUSINESS OF LIFE INSURANCE

cash result, including surplus, of $1,339.62. This amounted to a return of a little more than 31 per cent. interest, annually compounded, upon the entire premiums, making no allowance for the value of the life insurance. The protection the first year was $1,000, less $47.02 reserve, equals $952.98 ; the protection the last year was $339.62, less than nothing, i. e., there would have been a loss of $1,339.62, less $1,000, which sum only would have paid at death. The average protection, therefore, has been only $952.98 — $339.62

2=$613.36=2=$306.68.

This is approximate only, but will answer to give an idea of the benefits. A non-participating fifteen-year term insurance for $1,000 in the same company would have cost at that age $15.41 per annum; or, let us say, $4.72 for an average insurance of $306.68. Deducting this from the annual premium of the endowment insurance, $65.99, we have net an average annual investment of $61.27. Upon this the total cash result of $1,339.62 returned interest, annually compounded, at nearly 4 per cent. per annum.

The same company on an ordinary life policy for $1,000, with fifteen-year dividend period, re-turned $414.60 total cash result, in return for premiums of $26.49 per annum. This was scarcely more than the premiums paid. The protection the first year may be taken as $1,000, less $11.48 reserve, equals $988.52, and the last year