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"Non-Par" Insurance
Provides Dividends

In Advance

It is axiomatic that when honest, authentic and unbiased information is desired, the place to obtain it is from its original and impeccable source.

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"The Company, on November 25, 1918 had paid in policy

claims $14,000,000 more than to the corresponding date

in 1917; and claims in the ordinary department are still being

received in double the normal number daily. The claims in

the ordinary department are proportionately greater in num

ber than in the industrial department. The extraordinary

claim payments are due to the epidemic of influenza and

have more than used up the amount tentatively set aside for

the distribution of dividends in 1919. We regret to announce

that the Board of Directors has been constrained to omit

the usual declaration of dividends upon policies in the ordi

nary department. The holders of the policies issued on our

non-participating plan may congratulate themselves that the

low premiums charged gave them their dividends in advance."


The italics are ours.

Certified letter #729726 with Return Receipt Requested, was sent to Mr. Cecil J. North, President of the Metropolitan Life Insurance Company on May 11, 1962, requesting verification of the memo entitled “TO OUR POLICYHOLDERS” which appears on the opposite page. To date, we have received no reply. Authentication had to be obtained from a Metropolitan policyholder.

Relative to the memo, however, it should be noted in passing, that the Metropolitan Life Insurance Company was incorporated on May 24, 1868 (in succession to National Travelers Insurance Company) as a stock company, and they issued at this time "guaranteed cost" or nonparticipating life insurance policies of the type we recommend.

The Management found, however, that they could retain complete control, absolute authority and their identical positions (at the same or increased salaries) and, at the same time, rid themselves of all personal financial responsibility. Consequently, in 1915, the stockholders sold their shares of stock, on their own terms to the policyholders of record, and thus became a mutual company, placing the burden of "net cost" squarely in the lap of those who were, and those who would be, insured in the


It is indeed ironic that such an unqualified and unprecedented endorsement of “guaranteed cost" life insurance should emanate from one of the largest and leading mutual companies. Indeed it is rare that such an authentic bit of skeletonia should be uncloseted under any circumstances.

However, in view of the many uninformed and unsophisticated insurance buyers who still believe in "so called dividends," it does seem that they should rightfully be entitled to this authoritative and entirely unsolicited point of view.

When honesty, logic and equity are combined with sound

mathematical procedure, the APPARENT “net cost" advantage projected by most mutual life insurance companies is exposed as an antiquated fiction.

Positive proof of this and other pertinent dividend data

can be obtained from "A Study of Mutual Life Insurance Divi



Special Order Department

P. O. Box 126

Hampton, Va.

$12.50 each (quantity discount prices available)

Postage prepaid when check accompanies order.

NAS 62-336

Printed in USA

Copyright National Analytical Service

Reprints of this brochure are also available from *}

Love address

25 - 407 0.74 - pt.3 - 36

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From the book 'A Study of Mutual Life Insurance Dividends'

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