The Use of Partnership Insurance.

The Use of Partnership Insurance.To an increasing ex-
tent copartners in any line of business find it advisable to
insure their lives for the benefit of their firm. This may be
done in one of two ways: either each member of the partner-
ship may take out a separate policy on his life and make the
same payable to the firm, or to the surviving member or mem-
bers of the firm ; or the insurance may be taken jointly upon
all or any number of the partners, the contract in this instance
(called a joint-life policy) promising payment to the firm or

and the $4,000,000 carried by his son Rodman Wanamaker; the
$1,000,000 carried by Harry G. Selfridge in establishing his Ameri-
can department store in London; the $500,000 on the late Charles
Netcher, the department store manager of Chicago, who died while
enlarging his store, the prompt payment of which, after but one
premium was paid, largely assisted his wife in continuing the busi-
ness and suggested her carrying $1,200,000 insurance herself."
The numerous benefits derived from partnership insurance
become apparent upon a consideration of the many diffi-
culties that may confront a copartnership upon the death of
one of the members of the firm. In most partnerships the
several partners not only have supplied their respective por-
tions of the necessary capital, but each is a specialist in some
particular department. The death of any member of the firm,
therefore, may involve not only the withdrawal of his share
of the capital by his heirs but the loss of his skill and active
cooperation. If, however, the deceased partner has been in-
sured for the benefit of the firm, the proceeds of the policy
will enable the surviving partners to pay off his interest to his
heirs and carry on the business without delay and embarrass-
ment during the time necessary to find a successor. Fre-
quently the purchase of the deceased partner's interest becomes
highly desirable, especially where the business is a specialized
one, in order to prevent that interest from coming under the
control of persons in the firm who may be entirely ignorant
of the business and possibly hostile to its management.

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