AS AN INVESTMENT   233

$1,000, less $414.60, equals $585.40. The aver-age insurance approximates $988.52 + $585.20

2 = $1,573.92 =- 2 = $786.96. On the basis of the same term rate, this was worth $12.13 per annum, leaving $14.36 of the premium paid in for investment purposes. Upon this sum annually invested the cash return of $414.60 yielded interest annually compounded at nearly 10 per cent. per annum—a large part of which was due, of course, to the fact that the insurance really cost less than the term rate.

One reason for the difference in yield is that the endowment insurance as an investment was handicapped with a loading of $12.27 per $1,000 to only $6.62 for the life policy, al-though the average protection under the former was $306.68, while under the latter it was $786.96.

Of all the life insurance companies doing business in the United States, scarcely a half dozen have recognised this and have adjusted their rates, wholly or in large part, conformably with reason and common sense.

The foregoing illustrations are of the most favourable results of such policies; in more than a few instances companies have treated the earnings of these policies as surplus to be dealt with as the company desires and have dissipated it in excessive expenditure, instead of accumulating it for the policyholders. In such case the pre-

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