cy simply for
convenience, the rule applying equally to policies of longer term or
to the ordinary life policy, which is, in fact, an endowment policy
payable at death or age 100.[1]

[Footnote 1: The expense allowance on a plain life policy for $1,000,
taken at age 33, would be about $5.29; net premium (com. ex. 4 per
cent.), $18.04; total office premium, $23.33; present rate $24.10.]

Taking the case of the single premium endowment policy for $1,000, we
find that the following sums are required, each year to provide for
the care of the reserve and to pay the government fees (1 per cent. of
reserve):

1st year $6.9982 | 6th year $8.4136
2d " 7.2560 | 7th " 8.7381
3d " 7.5258 | 8th " 9.0781
4th " 7.8082 | 9th " 9.4346
5th " 8.1039 | 10th " 9.8086

The insurance expenses should be covered by the 20 per cent. allowance
given below:

1st year $ .4422 | 6th year $ .2566
2d " .4100 | 7th " .2076
3d " .3762 | 8th " .1556
4th " .3402 | 9th " .0988
5th " .2996 | 10th " .0344

Consequently the total contribution required from this policy each
year is:

1st year $7.4404 | 6th year $8.6702
2d " 7.6660 | 7th " 8.9457
3d " 7.9020 | 8th " 9.2337
4th " 8.1484 | 9th " 9.5334
5th " 8.4034 | 10th " 9.8430

The present value of all these contributions is found to be, at 4 per
cent. interest, $71.6394; in other words, this sum paid at the outset,
provides a fund from which we may deduct the current expenses of each
year in advance, and by accumulating the balance at the assumed rate
of interest from year to year, we shall have enough to pay the
anticipated expenses, leaving nothing over.

In the above case the sums in hand at the beginning of the year are as
follows:

1st year $71.3694 | 6th year $42.6981
2d " 66.7669 | 7th " 35.3890
3d " 61.4650 | 8th " 27.5009
4th " 55.7055 | 9th " 18.9979
5th " 49.4594 | 10th " 9.8430

We find a somewhat different condition existing during the first years
of a 5-year endowment policy. As there is more insurance and less
banking, the requirements are as follows:

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