Again, in order to cover expenses and provide against possible contingencies, it is common to add to the rates obtained by calculation from correct tables of mortality a certain percentage, called _loading_, which is usually found more than is necessary, and forms a second source of profit. Again, most tables of mortality are derived from the experience of whole communities, while all companies now subject applicants to a medical examination, and reject those found diseased; it being possible to discover, through the progress of medical science, even incipient signs of disease. Hence one would expect that among these selected lives the rates of mortality would be less than by ordinary statistics; and this is confirmed by the published experience of many companies. Here we find a third source of profit. In these three ways, and others incidental to the business, it happens that all corporations managed with ordinary prudence accumulate a much larger capital than is needed for future losses. The advocates of the stock plan contend that, by a low rate of premium, they furnish their assured with a full equivalent for that division of profits which is the special boast of other companies. In a corporation purely mutual, the whole surplus is periodically applied to the benefit of the assured, either by a dividend in cash, or by equitable additions to the amount assured without increase of premium, or by deducting from future premiums, while the amount assured remains the same. The advantages of the latter system must be evident to every one. It is of course important in all companies, whether mutual or not, that the officers should be men of integrity, sagacity, and financial experience, as well as that due precautions should be taken in the care and investment of the company's fund; and it is now proved by experience in this country, that, when a company is thus managed, so regular are the rates of mortality, so efficient the safeguards derived from the selection of lives, the assumption of low rates of interest, and the loading of premiums, that no company, when once well established, has ever met with disaster. On the other hand, there has been a rapid accretion of funds, in some instances to the amount of many millions of dollars. The characteristics of a good company are security and assurance at cost. It should sell, not policies merely, but assurance; and it should not make a profit for the capitalist out of the widow and orphan. The policies issued by life companies vary in their form and nature. The ordinary one is called the life policy, by which the company contracts to pay, on the death of the assured, the sum named in the policy, to the person in whose behalf the assurance is made.