UNIVERSITY OF ILLINOIS 
 LIBRARY 
 
 Class 
 
 Book Volume 
 
 H'ais-p 
 
POPULAR VIEW 
 
 OF 
 
 LIFE ASSURANCE: 
 
 EMBRACING 
 
 A SKETCH OF ITS ORIGIN AND PROGRESS,—ITS PRINCIPLES 
 OBJECTS, AND ADVANTAGES; 
 
 WITH 
 
 A TABULAR VIEW OF THE OFFICES IN GREAT BRITAIN AND IRELAND, 
 
 AND 
 
 AN APPENDIX. 
 
 By JOHN HUTCHISON, B. A. 
 
 Accountant, Glasgow. 
 
 “ Oue of the most useful consequences of human association .”—Professor De Morgan. 
 “-Carpe diem, quam minimum credula postero .”—Quintus Horatius Flaccus. 
 
 GLASGOW: 
 
 WILLIAM LANG, 80 ST. VINCENT STREET. 
 
 LONDON: S1MPKIN, MARSHALL, & CO. 
 EDINBURGH: FRASER & CO.—DUBLIN : JAMES M GLASHAN. 
 

 34 ?. 3 
 
 H*15> 
 
 
PREFAC E. 
 
 
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 While many learned Treatises on Life Assu¬ 
 rance have from time to time been given to 
 the world, and the labours of Simpson, Price, 
 Morgan, and Milne, have laid its foundations 
 deep in the securities of Mathematical Science, 
 on no subject whatever have the public at large 
 been so sparingly supplied with information. 
 A few years ago, a Series of Articles, entitled 
 “Popular Illustrations of Life Assurance,” ap¬ 
 peared in the Saturday Magazine; and these 
 have since been followed by several papers in 
 Chambers’ Edinburgh Journal, and more re¬ 
 cently by a “Dialogue” on the subject, con¬ 
 tained in a number of their Miscellany of 
 Tracts—the proprietors of these periodicals 
 
 203774 
 
IV 
 
 PREFACE. 
 
 having thus manifested their characteristic zeal 
 in furnishing useful information for the people. 
 Little more, however, has been done towards 
 the diffusion of knowledge on this most im¬ 
 portant subject. 
 
 The. present Compilation is an effort to 
 supply this desideratum; and, accordingly, the 
 principal prominence has been given to those 
 points which are of general interest, and on 
 which an intending Assurer would naturally 
 feel desirous of information. 
 
LIFE ASSURANCE. 
 
 ORIGIN AND PROGRESS. 
 
 One of the distinguishing characteristics of man, in 
 a state of civilisation, is forethought . In a rude 
 state of society, and among the aboriginal tribes of 
 every country, we find that the untutored popula¬ 
 tion carry their views little beyond the present hour; 
 and, concentrating all their thoughts and all their 
 exertions on the supply of present necessities, or the 
 gratification of present desires, they are utterly 
 thoughtless and improvident of the future—they 
 live as “ careless of to-morrow’s fare” as the birds 
 that fly over their heads, or the beasts that share 
 with them the forest. Wearied with the fatigues of 
 the chase, they seek the welcome repose of the 
 friendly hut, till to-morrow’s sun calls them forth to 
 
6 
 
 LIFE ASSURANCE. 
 
 provide for to-morrow’s wants. An instance of this 
 reckless want of foresight has been frequently ob¬ 
 served among certain tribes of the American Indians, 
 who heedlessly pluck the living branches from fruit¬ 
 bearing trees, and having satisfied their hunger for 
 the moment, leave the branches to wither on the 
 ground. Not so with the member of a civilised 
 community. He has learned not the importance 
 only, but the necessity, of anticipating the future, 
 and guarding against its evils—of providing for 
 periods of sickness—or for the infirmities of age— 
 or for the future comfort of those now depending on 
 his exertions, and of the benefit of which exertions 
 they may be soon or suddenly deprived. Accord¬ 
 ingly, associations have been formed for the pur¬ 
 pose of providing against such contingencies; and 
 Friendly Societies and Life Assurance Societies have 
 grown up among us; by contributing to the funds of 
 which all classes of the community, peasant as well 
 as peer, have the satisfaction of alleviating such 
 calamities as those to which we have referred. 
 
 The principle of Insurance has been hitherto ap¬ 
 plied chiefly to three objects—viz. protection against 
 loss of ships or their cargoes at sea, protection 
 
LIFE ASSURANCE. 
 
 7 
 
 against loss or damage by fire, and protection to 
 relatives against the death of those on whom they 
 are dependent for support. The principle, however, 
 might be advantageously applied to other objects. 
 A society, for example, was instituted at Paris in 
 1822, called the “ Societe D’Assurance Mutuelle ,” 
 the object of which was to insure landholders and 
 farmers against the ravages of storms—“ les planta¬ 
 tions de vigne , de tubac , et les houblonnieres etant 
 plus long temps etplus dangereusement exposees aux 
 ravages de la grele and societies of a similar kind 
 have been recently established in this country. 
 “ Guarantee ” societies have also been recently insti¬ 
 tuted, by contributing to which, the security re¬ 
 quired by parties holding offices of responsibility is 
 obtained. Indeed there is no limit to the variety of 
 objects to which the principle of Insurance might be 
 advantageously applied. 
 
 Life Assurance may be defined to be the assurance 
 of a certain sum, the payment of which is in any 
 way dependent on the life or lives of any person or 
 persons whatever. Thus the sum may be payable 
 at death, whenever that may happen; or at death, 
 in the event of that happening within a certain 
 
8 
 
 LIFE ASSURANCE. 
 
 specified period ; or in the event of the person sur¬ 
 viving a certain period; or at a certain specified 
 period, in the event of the person surviving it; or 
 in the event of one life surviving another; or on 
 the death of either of two lives; or of one of more 
 than two lives; or on the death of two or more 
 lives; or on the death of the longest of two lives. 
 The sale and purchase of annuities of every descrip¬ 
 tion are also comprehended under Life Assurance; 
 and accordingly, in the multiform transactions of 
 business, it is susceptible of a vast variety of appli¬ 
 cations. 
 
 Life Assurance seems to have been known on the 
 Continent before it was introduced in this country. 
 It originated in Britain about the beginning of the 
 seventeenth century, and was at first conducted by 
 individuals , in a manner similar to that in which 
 Marine Insurance is at present transacted. The first 
 society for Life Assurance was instituted in London 
 in 1706, under the name of the Amicable Society. 
 It was founded by Sir Thomas Allan, Bishop of Ox¬ 
 ford, who, along with some others, obtained a char¬ 
 ter for its formation, dated 25th July, 1706. By 
 the charter it was limited to 2000 shares or num- 
 
LIFE ASSURANCE. 
 
 9 
 
 bers on single lives, each member being limited to 
 the purchase of three shares. None were admitted 
 except those between the ages of 12 and 45. The 
 premiums were the same for all ages—viz. £7 :10s. 
 of entry-money for each share, and £5 annually 
 during life; and the net annual income was equally 
 divided among the nominees of those members who 
 died within the year. Such was the ignorance which 
 then existed on the subject of Life Assurance. In 
 1731, a second charter was obtained, and a third in 
 1790, by which the number of shares was raised to 
 4000; and again, in 1807, the Society obtained a 
 charter by which an important change was intro¬ 
 duced. It was then empowered to admit members 
 on each contributing “according to the age and 
 other circumstances of the person so to be admitted,” 
 the number of shares being limited to 8000. In 
 1823, the number of shares was extended by 
 another charter to 16,000; and again, in 1836, to 
 32,000. A share now amounts to £200; and not 
 more than 25 shares, or £5000, is insured on one 
 life. 
 
 For about half a century after the Institution of the 
 Amicable Society, Life Assurance made little prac- 
 
10 
 
 LIFE ASSURANCE. 
 
 tical progress; but during that period, De Moivre, 
 Simpson, and Deparcieux, made valuable contribu¬ 
 tions to the science. The next office established was 
 the London Union in 1714; then came the Royal 
 Exchange in 1720; and, in the following year, the 
 London Assurance Corporation. These offices were 
 constituted on the Proprietary system, the nature of 
 which will be afterwards explained. Little was done, 
 however, by these Institutions, till they were stimu¬ 
 lated by the success of the Equitable Society of 
 London, which was established in 1762, the scheme 
 having been recommended in a course of Lectures 
 read by Mr. Simpson, “ whose name,” says Dr. Price, 
 “ can never be forgotten, while there is any mathe¬ 
 matical or philosophical knowledge left in the world.” 
 In the computation of the premiums, the probabilities 
 of life in London were assumed, extending over a 
 period of twenty years; and as this included the year 
 1740, during which the mortality was unusually 
 great, the premiums were much higher than was 
 required, even according to the ordinary rate of 
 mortality in London. The Society made little pro¬ 
 gress for a considerable period; but Mr. Morgan 
 having, in 1775, been appointed to the office of Actu¬ 
 ary, and Dr. Price having communicated some valua- 
 
LIFE ASSURANCE. 
 
 11 
 
 ble information as to the mode of ascertaining the 
 state of the affairs of the Society, and urged the 
 necessity of reducing the exorbitant premiums, new 
 elements of prosperity were thus introduced. In 
 1782, at the suggestion of Dr. Price, new tables of 
 premiums were adopted, on the basis of the probabili¬ 
 ties of life at Northampton, with an addition thereto 
 of 15 per cent.; and, in order to compensate the ex¬ 
 isting members for their payment of the higher 
 premiums, an addition was made to each £100 in¬ 
 sured, of thirty shillings for every payment made 
 prior to 1st January, 1782. During the three fol¬ 
 lowing years, the number of new Insurances annu¬ 
 ally increased about one-half of their former number, 
 and the result of the investigation made in 1785 was 
 so favourable, that the 15 per cent, was taken off the 
 premiums. In 1800, it was resolved that an inves¬ 
 tigation of the value of each policy should be made 
 every ten years, and that the additions to the claims 
 should never exceed two-thirds of the surplus stock. 
 The progress of the Society was now so great as to 
 excite alarm that its magnitude and extent would 
 operate against its proper management; and, in 1815, 
 it was accordingly resolved to limit “ the number of 
 future participators of the surplus, at one and the 
 
12 
 
 LIFE ASSURANCE. 
 
 same time, to 5000,” whenever the members should 
 be reduced to that number. 
 
 The rapid increase of the Equitable Society in 
 numbers and wealth excited a desire of establishing 
 other Institutions, on the plan of Joint Stock Com¬ 
 panies, with the view of appropriating to the share¬ 
 holders the surplus which in that Society had been 
 divided among the members. Accordingly, in a few 
 years after, several new offices sprang up, and nearly 
 the whole of the Fire Offices extended their business 
 to Life Assurance. From the year 1706, however, 
 when the Amicable Society was instituted, down to 
 the year 1810, a period of upwards of a hundred 
 years, the subject seems to have attracted but little 
 of the public notice; as, during the whole of that 
 period, only eighteen offices were founded, while at 
 present there are upwards of one hundred and thirty 
 established in the United Kingdom. About twenty 
 of these have very recently started into existence, 
 while upwards of forty more have been projected. 
 It were to be wished, however, that these were all 
 characterised by the soundness of principle and pru¬ 
 dence of management so highly requisite in such In¬ 
 stitutions: but during the prevalence of a Joint Stock 
 
LIFE ASSURANCE. 
 
 13 
 
 mania, it was not to be expected that so profitable a 
 mode of investment would be overlooked; and ac¬ 
 cordingly we find large numbers of Proprietary offices, 
 each endeavouring to strike out some new feature to 
 attract attention. Still, however, there is reason to 
 believe that Life Assurance is now beginning to re¬ 
 ceive that attention which its great importance and 
 general utility demand, and to cherish the hope that 
 the benefits it has hitherto bestowed, are pledges of 
 incalculably greater benefits yet to be conferred upon 
 the world. 
 
14 
 
 LIFE ASSURANCE. 
 
 PRINCIPLES—TABLES OF MORTALITY-RATE OF 
 
 INTEREST-PREMIUMS. 
 
 In the investigation of the subject of Life Assur¬ 
 ance, one of the first points which naturally present 
 themselves to the mind of the inquirer, is the mode 
 of ascertaining the amount which ought to be con¬ 
 tributed by parties on whose lives Assurances are to 
 be effected. The ignorance which formerly existed 
 on this important point may be learned from the rates 
 of the Amicable Society, which, down to the year 
 1807, being a period of a hundred years from its com¬ 
 mencement, exacted the same contribution or pre¬ 
 mium at all ages between 12 and 45! It is obvious, 
 however, that the rates of contribution should vary 
 according to the age of the individual, the younger 
 paying less to secure a certain amount, as he is likely 
 to live longer, and therefore to pay longer; and the 
 older paying, to secure the same amount, such larger 
 premium, as will compensate the probability of his 
 
LIFE ASSURANCE. 
 
 15 
 
 dying sooner. Hence it follows, that in order to 
 fix the rate to be paid for every age, it is necessary 
 to ascertain, in the first place, how long individuals of 
 every age are likely to live; or, in other words, the 
 expectation of life. This important information is 
 arrived at by observations on th eRate of Mortality, 
 and to this we shall now turn our attention. 
 
 Tables of Mortality, which are constructed from 
 registers of births and deaths, are founded on the 
 assumption that human life is of a certain average 
 duration, and by such tables we can arrive at the 
 number of deaths that may be expected to occur 
 among a given number of individuals in a certain 
 period. For, although nothing can be more uncer¬ 
 tain than any individual life, yet when we take in 
 a number of individuals, the case is very different. 
 For example, out of any 10,000 individuals in one 
 of our large towns, it is almost certain that a forti¬ 
 eth part of them will die during the next year. Thus, 
 among a given number of children j ust born, we can 
 calculate how many will die the first year, how many 
 the second, &c.—and also how many will reach ten 
 years of age, how many twenty, how many thirty, 
 &c.; and the greater the number embraced in our 
 
16 
 
 LIFE ASSURANCE. 
 
 observations, the nearer the truth will be the result. 
 A similar uniformity of result is found to exist in 
 many other departments of investigation; and hence 
 it has been remarked by a popular writer, that “it 
 might be calculated, if we had the proper data, how 
 many of 10,000 sucklings would reach six feet of 
 stature, and how many would stop short at five feet 
 six. Nothing of course could be more uncertain, <?f 
 any given child , that he was to attain either of these 
 heights; yet, of the whole , the number who would 
 exceed five feet six could be calculated almost to a 
 babe. We could even predicate as to the number 
 who would turn out to be fat men, how many would 
 exceed sixteen stone, how many seventeen, and so 
 on, if we had only observed beforehand how many, 
 in proportion to the mass of society, attain to these 
 degrees of weight.’’* Thus uniform in their opera¬ 
 tion are the laws of nature. 
 
 The keeping of parish registers commenced in 
 England in 1538, but they attracted little notice 
 till the year 1662, when they first began to be re¬ 
 garded as the sources of valuable information. The 
 
 ♦ Chambers’ Journal. 
 
LIFE ASSURANCE. 
 
 17 
 
 London Bills of Mortality were begun about the year 
 1592, and have been regularly continued since the 
 year 1603. 
 
 The Tables of Mortality generally adopted as the 
 bases of Life Assurance calculations are the following. 
 
 I. The Northampton Table , which was con¬ 
 structed from observations made by Dr. Price on 
 the deaths registered for one of the Parishes of 
 Northampton, between the years 1741 and 1780. 
 The table indicates that out of 11,650 persons born, 
 8,650 reach one year of 'age, and, consequently, 
 3,000 die before they attain that age; 7,283 reach 
 two years of age, and thus 1,367 die before that 
 age; and so on, as in the table, until the age of 96, 
 which Dr. Price considered the limit of human 
 life. The table thus shows the number living at 
 every age , and also the annual decrements . 
 
 II. The Carlisle Table was framed from obser¬ 
 vations of the deaths which occurred at each year 
 of life among a certain number of persons in the town 
 of Carlisle. The observations were made by Dr. 
 Heysham, between 1779 and 1788, and the calcula- 
 
 B 
 
18 
 
 LIFE ASSURANCE. 
 
 tious by Mr. Milne, author of the well known Trea¬ 
 tise on Annuities. 
 
 III. The Government Table was compiled from 
 observations on the mortality which occurred among 
 the Government Annuitants and Tontine Nominees 
 between 1693 and 1826, but chiefly subsequent to 
 1746. It was prepared under direction of Govern¬ 
 ment, by Mr. Finlaison, Actuary of the National Debt 
 Office, and, in 1829, was adopted by Parliament as 
 the basis of all financial transactions involving the 
 duration of life. On this table, for example, the Com¬ 
 missioners for the reduction of the National Debt 
 proceed, in granting Life Annuities in lieu of stock. 
 Mr. Finlaison in his investigations distinguished the 
 sexes, and first established the fact of the longer 
 duration of female life. This table is a highly valu¬ 
 able addition to the science, and has been adopted 
 by several Assurance Offices as the basis of their cal¬ 
 culations. 
 
 The following are the Tables of Mortality which 
 have been referred to. 
 
LIFE ASSURANCE 
 
 Age. 
 
 North¬ 
 
 ampton. 
 
 CorlHo 
 
 Government. 
 
 Age. 
 
 North¬ 
 
 ampton. 
 
 Carlisle 
 
 Government. 
 
 
 Males. 
 
 Females. 
 
 
 Males. 
 
 Females. 
 
 0 
 
 11,650 
 
 10,000 
 
 1000 
 
 1000 
 
 53 
 
 2612 
 
 4211 
 
 531 
 
 601 
 
 1 
 
 8650 
 
 8461 
 
 981 
 
 981 
 
 54 
 
 2530 
 
 4143 
 
 520 
 
 593 
 
 2 
 
 7283 
 
 7779 
 
 963 
 
 967 
 
 55 
 
 2448 
 
 4073 
 
 508 
 
 585 
 
 3 
 
 6781 
 
 7274 
 
 949 
 
 955 
 
 56 
 
 2366 
 
 4000 
 
 495 
 
 576 
 
 4 
 
 6446 
 
 6998 
 
 937 
 
 945 
 
 57 
 
 2284 
 
 3924 
 
 482 
 
 568 
 
 5 
 
 6249 
 
 6797 
 
 927 
 
 935 
 
 58 
 
 2202 
 
 3842 
 
 468 
 
 559 
 
 6 
 
 6065 
 
 6676 
 
 919 
 
 926 
 
 59 
 
 2120 
 
 3749 
 
 454 
 
 549 
 
 7 
 
 5925 
 
 6594 
 
 912 
 
 919 
 
 60 
 
 2038 
 
 3643 
 
 440 
 
 539 
 
 8 
 
 5815 
 
 6536 
 
 906 
 
 913 
 
 61 
 
 1956 
 
 3521 
 
 426 
 
 529 
 
 9 
 
 5735 
 
 6493 
 
 901 
 
 908 
 
 62 
 
 1874 
 
 3395 
 
 413 
 
 519 
 
 10 
 
 5675 
 
 6460 
 
 896 
 
 903 
 
 63 
 
 1793 
 
 3268 
 
 399 
 
 508 
 
 11 
 
 5623 
 
 6431 
 
 891 
 
 899 
 
 64 
 
 1712 
 
 3143 
 
 385 
 
 496 
 
 12 
 
 5573 
 
 6400 
 
 886 
 
 895 
 
 65 
 
 1632 
 
 3018 
 
 370 
 
 484 
 
 13 
 
 5523 
 
 6368 
 
 881 
 
 892 
 
 66 
 
 1552 
 
 2894 
 
 355 
 
 471 
 
 14 
 
 5473 
 
 6335 
 
 876 
 
 887 
 
 67 
 
 1472 
 
 2771 
 
 339 
 
 457 
 
 15 
 
 5423 
 
 6300 
 
 872 
 
 883 
 
 68 
 
 1392 
 
 2648 
 
 322 
 
 443 
 
 16 
 
 5373 
 
 6261 
 
 866 
 
 876 
 
 69 
 
 1312 
 
 2525 
 
 305 
 
 428 
 
 17 
 
 5320 
 
 6219 
 
 860 
 
 870 
 
 70 
 
 1232 
 
 2401 
 
 288 
 
 412 
 
 18 
 
 5262 
 
 6176 
 
 854 
 
 863 
 
 71 
 
 1152 
 
 2277 
 
 270 
 
 395 
 
 19 
 
 5199 
 
 6133 
 
 846 
 
 856 
 
 72 
 
 1072 
 
 2143 
 
 253 
 
 377 
 
 20 
 
 5132 
 
 6090 
 
 837 
 
 848 
 
 73 
 
 992 
 
 1997 
 
 235 
 
 358 
 
 21 
 
 5060 
 
 6047 
 
 827 
 
 841 
 
 74 
 
 912 
 
 1841 
 
 218 
 
 339 
 
 22 
 
 4985 
 
 6005 
 
 816 
 
 834 
 
 75 
 
 832 
 
 1675 
 
 202 
 
 319 
 
 23 
 
 4910 
 
 5963 
 
 804 
 
 827 
 
 76 
 
 752 
 
 1515 
 
 185 
 
 298 
 
 24 
 
 4835 
 
 5921 
 
 793 
 
 820 
 
 77 
 
 675 
 
 1359 
 
 171 
 
 277 
 
 25 
 
 4760 
 
 5879 
 
 782 
 
 813 
 
 78 
 
 602 
 
 1213 
 
 156 
 
 255 
 
 26 
 
 4685 
 
 5836 
 
 771 
 
 805 
 
 79 
 
 534 
 
 1081 
 
 141 
 
 233 
 
 27 
 
 4610 
 
 5793 
 
 761 
 
 798 
 
 80 
 
 469 
 
 953 
 
 125 
 
 210 
 
 28 
 
 4535 
 
 5748 
 
 751 
 
 791 
 
 81 
 
 406 
 
 837 
 
 110 
 
 189 
 
 29 
 
 4460 
 
 5698 
 
 742 
 
 784 
 
 82 
 
 346 
 
 725 
 
 95 
 
 168 
 
 30 
 
 4385 
 
 5642 
 
 732 
 
 777 
 
 83 
 
 289 
 
 623 
 
 81 
 
 149 
 
 31 
 
 4310 
 
 5585 
 
 723 
 
 770 
 
 84 
 
 234 
 
 529 
 
 68 
 
 132 
 
 32 
 
 4235 
 
 5528 
 
 714 
 
 763 
 
 85 
 
 186 
 
 445 
 
 56 
 
 117 
 
 33 
 
 4160 
 
 5472 
 
 705 
 
 755 
 
 86 
 
 145 
 
 367 
 
 44 
 
 103 
 
 31 
 
 4085 
 
 5417 
 
 696 
 
 748 
 
 87 
 
 111 
 
 296 
 
 34 
 
 89 
 
 35 
 
 4010 
 
 5362 
 
 687 
 
 740 
 
 88 
 
 83 
 
 232 
 
 24 
 
 76 
 
 36 
 
 3935 
 
 5307 
 
 679 
 
 732 
 
 89 
 
 62 
 
 181 
 
 17 
 
 64 
 
 37 
 
 3860 
 
 5251 
 
 670 
 
 724 
 
 90 
 
 46 
 
 142 
 
 11 
 
 52 
 
 38 
 
 3785 
 
 5194 
 
 662 
 
 716 
 
 91 
 
 34 
 
 105 
 
 7 
 
 41 
 
 39 
 
 3710 
 
 5136 
 
 653 
 
 708 
 
 92 
 
 24 
 
 75 
 
 4 
 
 30 
 
 40 
 
 3635 
 
 5075 
 
 644 
 
 700 
 
 93 
 
 16 
 
 54 
 
 3 
 
 21 
 
 41 
 
 3559 
 
 5009 
 
 63 6 
 
 693 
 
 94 
 
 9 
 
 40 
 
 1 
 
 14 
 
 42 
 
 3482 
 
 4940 
 
 627 
 
 685 
 
 95 
 
 4 
 
 30 
 
 
 8 
 
 43 
 
 3404 
 
 4869 
 
 619 
 
 677 
 
 96 
 
 1 
 
 23 
 
 
 5 
 
 44 
 
 3326 
 
 4798 
 
 610 
 
 669 
 
 97 
 
 
 18 
 
 
 2 
 
 45 
 
 3248 
 
 4727 
 
 602 
 
 661 
 
 98 
 
 
 14 
 
 
 1 
 
 46 
 
 3170 
 
 4657 
 
 594 
 
 654 
 
 99 
 
 
 11 
 
 
 
 47 
 
 3092 
 
 4588 
 
 586 
 
 646 
 
 100 
 
 
 9 
 
 
 
 48 
 
 3014 
 
 4521 
 
 578 
 
 638 
 
 101 
 
 
 7 
 
 
 
 49 
 
 2936 
 
 4458 
 
 570 
 
 631 
 
 102 
 
 
 5 
 
 
 
 50 
 
 2857 
 
 4397 
 
 561 
 
 623 
 
 103 
 
 
 3 
 
 
 
 51 
 
 2776 
 
 4338 
 
 552 
 
 616 
 
 104 
 
 
 1 
 
 
 
 52 
 
 2694 
 
 4276 
 
 542 
 
 608 
 
 
 
 1 
 
 
 
20 
 
 LIFE ASSURANCE. 
 
 From these Tables we can easily calculate the pro¬ 
 bability of a person attaining a certain age. In 
 order to explain how this is done, it may be premised 
 that the probability of the happening of an event is 
 expressed by a fraction, the numerator of which de¬ 
 notes the number of chances for its happening, and 
 the denominator the number of chances for its hap¬ 
 pening or failing. Thus, to find, from the Carlisle 
 Table, the probability of a person of 35 attaining 50 
 years of age; out of 5,362 persons living at the age 
 of 35,—4,397 attain the age of 50, and hence 965 die 
 in the interval. The probability that a person aged 
 35 shall live to 50, is therefore 
 
 4397 
 
 4397+965 
 
 4397 
 
 5362 
 
 or .82 
 
 On this principle are deduced from the Tables 
 of Mortality, tables of the expectation of life , show¬ 
 ing the average number of years which persons of 
 every age may be expected to live. Thus, in the Car¬ 
 lisle Table (page 22), opposite 40, we find 27.61, mean¬ 
 ing that persons aged 40 live one with another 27.61 
 years. This calculation is made as to any given age, 
 by dividing the sum of all the living above that age, 
 
LIFE ASSURANCE. 
 
 21 
 
 as shown in the table, by the number living at the 
 age. 
 
 The following are Tables of the Expectation of 
 Life, thus deduced from the forgoing Tables of Mor¬ 
 tality. 
 
22 
 
 LIFE ASSURANCE. 
 
 Age . 
 
 North¬ 
 
 ampton. 
 
 
 Gove 
 
 rnment. 
 
 Age. 
 
 North¬ 
 
 ampton. 
 
 
 Government. 
 
 
 Males. 
 
 Females. 
 
 
 Males. 
 
 Females. 
 
 0 
 
 25.18 
 
 38.72 
 
 50.16 
 
 55.51 
 
 53 
 
 16.54 
 
 18.79 
 
 18.34 
 
 22.22 
 
 1 
 
 32 74 
 
 44.68 
 
 50.13 
 
 55.59 
 
 54 
 
 16.06 
 
 18.28 
 
 17.73 
 
 21.50 
 
 2 
 
 37.79 
 
 47.55 
 
 50.04 
 
 55.37 
 
 55 
 
 15.58 
 
 17.58 
 
 17.15 
 
 20.79 
 
 3 
 
 39.55 
 
 49.82 
 
 49.80 
 
 55.05 
 
 56 
 
 15.10 
 
 16.89 
 
 16.57 
 
 20.08 
 
 4 
 
 40.58 
 
 50.76 
 
 49.42 
 
 54.65 
 
 57 
 
 14.63 
 
 16.21 
 
 16.02 
 
 19.38 
 
 5 
 
 40.84 
 
 51.25 
 
 48.93 
 
 54.23 
 
 58 
 
 14.15 
 
 15.55 
 
 15.47 
 
 18.69 
 
 6 
 
 41.07 
 
 51.17 
 
 48.36 
 
 53.72 
 
 59 
 
 13.68 
 
 14.92 
 
 14.93 
 
 18.00 
 
 7 
 
 41.03 
 
 50.80 
 
 47.71 
 
 53.15 
 
 60 
 
 13.21 
 
 14.34 
 
 14.39 
 
 17.32 
 
 8 
 
 40.79 
 
 50 24 
 
 47.02 
 
 52.50 
 
 61 
 
 12.75 
 
 13.82 
 
 13.84 
 
 16.64 
 
 9 
 
 40.36 
 
 49.57 
 
 46.30 
 
 51.80 
 
 62 
 
 12.28 
 
 13.31 
 
 13.28 
 
 15.96 
 
 10 
 
 39.78 
 
 48.82 
 
 45.57 
 
 51.05 
 
 63 
 
 11.81 
 
 12.81 
 
 12.72 
 
 15.30 
 
 11 
 
 39 14 
 
 48.04 
 
 44.83 
 
 50.27 
 
 64 
 
 11.35 
 
 12.30 
 
 12.17 
 
 14.64 
 
 12 
 
 38.49 
 
 47.27 
 
 44.07 
 
 49.48 
 
 65 
 
 10.88 
 
 11.79 
 
 11.63 
 
 14.00 
 
 13 
 
 37.83 
 
 46.51 
 
 43.31 
 
 48.70 
 
 66 
 
 10.42 
 
 11.27 
 
 11.10 
 
 13.37 
 
 14 
 
 37.17 
 
 45.75 
 
 42.53 
 
 47.93 
 
 67 
 
 9.96 
 
 10.75 
 
 10.61 
 
 12.76 
 
 15 
 
 36.51 
 
 45.00 
 
 41.76 
 
 47.19 
 
 68 
 
 9.50 
 
 10.23 
 
 10 14 
 
 12.16 
 
 16 
 
 35.85 
 
 44.27 
 
 41.01 
 
 46.51 
 
 69 
 
 9.05 
 
 9.70 
 
 9.67 
 
 11.57 
 
 17 
 
 35.20 
 
 43.57 
 
 40.29 
 
 45.86 
 
 70 
 
 8.60 
 
 9.18 
 
 9.22 
 
 10.99 
 
 18 
 
 34.58 
 
 42.87 
 
 39.61 
 
 45.22 
 
 71 
 
 8.17 
 
 8.65 
 
 8.79 
 
 10.44 
 
 19 
 
 33.99 
 
 42.17 
 
 38.98 
 
 44.60 
 
 72 
 
 7.74 
 
 8.16 
 
 8.37 
 
 9.92 
 
 20 
 
 33.43 
 
 41.46 
 
 38.39 
 
 43.99 
 
 73 
 
 7.33 
 
 7.72 
 
 7.96 
 
 9.41 
 
 21 
 
 32.90 
 
 40.75 
 
 37.83 
 
 43.36 
 
 74 
 
 6.92 
 
 7.33 
 
 7.54 
 
 8.92 
 
 22 
 
 32 39 
 
 40.04 
 
 37.34 
 
 42.73 
 
 75 
 
 6.54 
 
 7.01 
 
 7.12 
 
 8.46 
 
 23 
 
 31.88 
 
 39 31 
 
 36.87 
 
 42.09 
 
 76 
 
 6.18 
 
 6.69 
 
 6.69 
 
 8.00 
 
 24 
 
 31.36 
 
 38.59 
 
 36.39 
 
 41.45 
 
 77 
 
 5.83 
 
 6.40 
 
 6.23 
 
 7.58 
 
 25 
 
 30.85 
 
 37.86 
 
 35.90 
 
 40.81 
 
 78 
 
 5.48 
 
 6.12 
 
 5.78 
 
 7.19 
 
 26 
 
 30.33 
 
 37 14 
 
 35.41 
 
 40.17 
 
 79 
 
 5.11 
 
 5.80 
 
 5.35 
 
 6 83 
 
 27 
 
 29.82 
 
 36.41 
 
 34.86 
 
 39.52 
 
 80 
 
 4.75 
 
 5.51 
 
 4.94 
 
 6.50 
 
 28 
 
 29.30 
 
 35.69 
 
 34.31 
 
 38.87 
 
 81 
 
 4.41 
 
 5.21 
 
 4.55 
 
 6.20 
 
 29 
 
 28.79 
 
 35.00 
 
 33.75 
 
 38.22 
 
 82 
 
 4.09 
 
 4.93 
 
 4.18 
 
 5.89 
 
 30 
 
 28.27 
 
 34.34 
 
 33.17 
 
 37.57 
 
 83 
 
 3.80 
 
 4.65 
 
 3.82 
 
 5.57 
 
 31 
 
 27.76 
 
 33.68 
 
 32.59 
 
 36.91 
 
 84 
 
 3.58 
 
 4.39 
 
 3.46 
 
 5-22 
 
 32 
 
 27.24 
 
 33.03 
 
 32.00 
 
 36.26 
 
 85 
 
 3.37 
 
 4.12 
 
 3.12 
 
 4.84 
 
 33 
 
 26.72 
 
 32.36 
 
 31.40 
 
 35.61 
 
 86 
 
 3 19 
 
 3.90 
 
 2.81 
 
 4.44 
 
 34 
 
 26.20 
 
 31.68 
 
 30.79 
 
 34 96 
 
 87 
 
 3.01 
 
 3.71 
 
 2.53 
 
 4.03 
 
 35 
 
 25.68 
 
 31.00 
 
 30.17 
 
 34.31 
 
 88 
 
 2.86 
 
 3.59 
 
 2.31 
 
 3.62 
 
 36 
 
 25.16 
 
 30.32 
 
 29.54 
 
 33.68 
 
 89 
 
 2.66 
 
 3.47 
 
 2.12 
 
 3.21 
 
 37 
 
 24.64 
 
 29.64 
 
 28.91 
 
 33.04 
 
 90 
 
 2.41 
 
 3.28 
 
 1.95 
 
 2.83 
 
 38 
 
 24.12 
 
 28.96 
 
 28.28 
 
 32.40 
 
 91 
 
 2.09 
 
 3.26 
 
 1.83 
 
 2.49 
 
 39 
 
 23.60 
 
 28.28 
 
 27 65 
 
 31.76 
 
 92 
 
 1.75 
 
 3.37 
 
 1.65 
 
 2.21 
 
 40 
 
 23.08 
 
 27.61 
 
 27.02 
 
 31.12 
 
 93 
 
 1.37 
 
 3.48 
 
 1.49 
 
 1.97 
 
 41 
 
 22.56 
 
 26.97 
 
 26.39 
 
 30.46 
 
 94 
 
 1.05 
 
 3 53 
 
 1.34 
 
 1.75 
 
 42 
 
 22.04 
 
 26.34 
 
 25.74 
 
 29.81 
 
 95 
 
 .75 
 
 3.53 
 
 1.18 
 
 1.55 
 
 43 
 
 21.54 
 
 25 71 
 
 25.08 
 
 29.14 
 
 96 
 
 .50 
 
 3.46 
 
 .97 
 
 1.32 
 
 44 
 
 21.03 
 
 25.09 
 
 24.42 
 
 28.48 
 
 97 
 
 
 3.28 
 
 .75 
 
 1.12 
 
 45 
 
 20.52 
 
 24.46 
 
 23.75 
 
 27.81 
 
 98 
 
 
 3.07 
 
 .50 
 
 .94 
 
 46 
 
 20.02 
 
 23.82 
 
 23.07 
 
 27.13 
 
 99 
 
 
 2.77 
 
 
 .75 
 
 47 
 
 19.51 
 
 23.17 
 
 22.38 
 
 26.44 
 
 100 
 
 
 2.28 
 
 
 .50 
 
 48 
 
 19.00 
 
 22.50 
 
 21.68 
 
 25.75 
 
 101 
 
 
 1.79 
 
 
 
 49 
 
 18.49 
 
 21.81 
 
 20.98 
 
 25.06 
 
 102 
 
 
 1.30 
 
 
 
 50 
 
 17.99 
 
 21.11 
 
 20.30 
 
 24.35 
 
 103 
 
 
 .83 
 
 
 
 51 
 
 17.50 
 
 20.39 
 
 19.62 
 
 23.65 
 
 104 
 
 
 50 
 
 
 
 52 
 
 17.02 
 
 19.68 
 
 18.97 
 
 22.39 
 
 
 
 
 
 
LIFE ASSURANCE. 
 
 23 
 
 On examining these Tables, it will be found that, 
 with the exception of the Northampton, the diver¬ 
 gence of which is considerable at all but the higher 
 ages, they closely approximate each other. Indeed, 
 it is now generally admitted that the Northampton 
 table indicates too high a rate of mortality, owing 
 chiefly to the circumstance that Dr. Price did not 
 give effect to the fluctuations in the population from 
 immigration. Accordingly,Mr .Babbage remarks,that 
 “the Northampton tables are those least calculated to 
 represent the probable rate of mortality,—they are 
 tables which an experience of thirty years has proved 
 to be erroneous throughout a large part, in the pro¬ 
 portions of 2 to 1.” 
 
 From observations made by DeMoivre, at Breslaw, 
 in the years 1687—1691, he concluded that of 86 
 persons born, one dies every year till all are extinct. 
 This is generally called the hypothesis of De Moivre . 
 With this the Northampton table nearly agrees at 
 the middle ages; “ but both,” says Professor De Mor¬ 
 gan, “give much too large a mortality for the circum¬ 
 stances of the last half century, as is proved by all 
 the tables which have been lately constructed.” The 
 truth of this is farther corroborated by the report 
 
24 
 
 LIFE ASSURANCE. 
 
 of a Committee of the House of Commons, appointed 
 in 1827 to investigate this subject. “The evidence,” 
 says the Report, “appears to your Committee to be 
 strong and decisive in favour of the use of tables which 
 give an expectation of life higher than the Nor¬ 
 thampton. In truth, there is not even a prima facie 
 case in their favour. It is admitted that these tables 
 were originally formed, in a degree, upon hypotheti¬ 
 cal data, and it is not affirmed that they have been 
 verified by any actual and subsequent observation, 
 or by the experience of any Society.” 
 
 While the Northampton Table has not been 
 verified “by the experience of any Society/’ on the 
 other hand, the correctness of the Carlisle and Go¬ 
 vernment Tables has been established by the actual 
 experience of a Life Assurance Society for nearly 
 seventy years, viz. the Equitable Society of London, a 
 table of the expectation of life having been deduced 
 by Mr. Morgan from the experience of this Society, 
 from its commencement, in 1762, down to 1829. 
 
 Another valuable addition has recently been made 
 to our information on this subject, by the publication, 
 under the superintendence of a Committee of eminent 
 Actuaries, of a rate of mortality deduced from the 
 experience of seventeen offices, and embracing 62,537 
 
LIFE ASSURANCE. 
 
 25 
 
 Assurances.* The close accordance of this table with 
 the tables already referred to (the Northampton 
 excepted) is highly satisfactory, inasmuch as it con¬ 
 clusively establishes the trustworthiness of these ta¬ 
 bles, and thus places beyond all doubt the sufficiency 
 of rates of premium founded thereon, and the se¬ 
 curity of those offices which have adopted one or 
 other of them as the basis of their calculations. The 
 relation which these tables bear to each other may 
 be seen at a glance from the following Table, show¬ 
 ing the mean expectation of life at various ages, ac¬ 
 cording to each. 
 
 Age. 
 
 North¬ 
 
 ampton. 
 
 Carlisle 
 
 Govrnt. 
 
 Equitable 
 
 Society. 
 
 Seventeen 
 
 Offices. 
 
 10 
 
 39.78 
 
 48.82 
 
 45.57 
 
 48.83 
 
 48.36 
 
 15 
 
 36.51 
 
 45.00 
 
 41.76 
 
 44.81 
 
 44.96 
 
 20 
 
 33.43 
 
 41.46 
 
 38.39 
 
 41.67 
 
 41.49 
 
 25 
 
 30.85 
 
 37.86 
 
 35.90 
 
 38.12 
 
 37.98 
 
 30 
 
 28.27 
 
 34.34 
 
 33.17 
 
 34.33 
 
 34.43 
 
 35 
 
 25.68 
 
 31.00 
 
 30.17 
 
 30.93 
 
 30.87 
 
 40 
 
 23.08 
 
 27.61 
 
 27.02 
 
 27.40 
 
 27.28 
 
 45 
 
 20.52 
 
 24.46 
 
 23.75 
 
 23.87 
 
 23.69 
 
 50 
 
 17.99 
 
 21.11 
 
 20.30 
 
 20.36 
 
 20.18 
 
 55 
 
 15.58 
 
 17.58 
 
 17.15 
 
 16.99 
 
 16.86 
 
 60 
 
 13.21 
 
 14.34 
 
 J4.39 
 
 13.91 
 
 13.77 
 
 65 
 
 10.88 
 
 11.79 
 
 11.63 
 
 12.35 
 
 10.97 
 
 VO 
 
 8.60 
 
 9.18 
 
 9.22 
 
 9.84 
 
 8.54 
 
 75 
 
 6.54 
 
 7.01 
 
 7.12 
 
 7.52 
 
 6.48 
 
 80 
 
 4.75 
 
 5.51 
 
 4.94 
 
 5.38 
 
 4.78 
 
 85 
 
 3.37 
 
 4.12 
 
 3.12 
 
 3.73 
 
 3.36 
 
 * Tables of Annuities and Assurances calculated from a new rate 
 of mortality, by Mr. Jones, Actuary to the National Mercantile 
 Life Assurance Society. London, 1843. 
 
26 
 
 LIFE ASSURANCE, 
 
 It may be supposed that Tables founded on ob¬ 
 servations made in certain limited localities, or among 
 a limited class, will not furnish correct indications of 
 the rate of mortality throughout the kingdom. The 
 following Table, however, will show how closely the 
 Carlisle and Government tables represent the general 
 mortality. It is a Table of the expectation of male 
 life based on the mortality of England and Wales , 
 as ascertained from the Parish Registers during the 
 eighteen years from 1813 to 1830, with excerpts 
 from the Carlisle and Government Tables for the 
 same ages, in order to facilitate the comparison. 
 
 Age . 
 
 England 
 
 and 
 
 Wales. 
 
 Carlisle. 
 
 Govrnt. 
 
 Age. 
 
 England 
 
 and 
 
 Wales. 
 
 Carlisle. 
 
 Govrnt. 
 
 10 
 
 46.83 
 
 48.82 
 
 45.57 
 
 50 
 
 20.31 
 
 21.11 
 
 20.30 
 
 15 
 
 43.08 
 
 45.00 
 
 41.76 
 
 55 
 
 17.19 
 
 17.58 
 
 17 . 5 
 
 20 
 
 39.65 
 
 41.46 
 
 38.39 
 
 60 
 
 14.20 
 
 14.34 
 
 14.39 
 
 25 
 
 36.55 
 
 37.86 
 
 35.90 
 
 65 
 
 11.43 
 
 11.79 
 
 11.63 
 
 30 
 
 33.34 
 
 34.34 
 
 33.17 
 
 70 
 
 8.94 
 
 9.18 
 
 9.22 1 
 
 35 
 
 30.03 
 
 31.00 
 
 30.17 
 
 75 
 
 6.78 
 
 7.01 
 
 7.12 I 
 
 40 
 
 26.75 
 
 27.61 
 
 27.02 
 
 80 
 
 5.05 
 
 5.51 
 
 4.94 
 
 45 
 
 23.48 
 
 24 46 
 
 23.75 
 
 85 
 
 3.85 
 
 4.12 
 
 3.12 
 
 But there is another element, besides the rate of 
 mortality, which enters into the calculation of the 
 Premiums of Life Assurance, viz. the rate of Interest. 
 
 The moneys from time to time paid in to an office 
 being invested to the best advantage, and improved at 
 interest, it is obvious that the higher the rate of interest 
 
LIFE ASSURANCE. 
 
 27 
 
 obtained on the funds thus invested, the lower will 
 be the Premiums at which the office can afford to 
 grant Assurances. Hence the average rate of interest 
 which an office may realise, is another point which 
 it is of importance to ascertain; but this cannot be 
 determined with so much precision as the rate of 
 mortality, the variations in the latter being in re¬ 
 ality less than in the former. 
 
 On this point, Professor De Morgan and others 
 are of opinion that no higher rate than 3 J per cent, 
 can be calculated on with any degree of certainty, 
 while Mr. Finlaison contends that 4 per cent, may 
 be safely reckoned on, amid all the fluctuations to 
 which interest is liable. It is to be observed, however, 
 that Assurance Companies are possessed of facilities in 
 regard to investments not always at the command of 
 individual capitalists; and, on appealing to their own 
 experience on this question, we learn from their Re¬ 
 ports, that, generally speaking, their funds have 
 produced about or nearly 5 per cent. Hence it would 
 appear that 4 per cent, may be safely assumed by 
 an office in the calculation of its Premiums. 
 
 Having thus arrived at the rate of Mortality which 
 
28 
 
 LIFE ASSURANCE. 
 
 may be expected to hold among the assured, and 
 having also ascertained what rate of interest may be 
 reasonably anticipated on the investment of the 
 funds, we are possessed of the elements from which 
 to deduce the proper Premium for every age. Now 
 it is obvious, that if the deaths among the assured 
 were to happen in exact accordance with the indica¬ 
 tions of the table of mortality assumed by the office, 
 and were the funds to yield neither more nor less 
 than the rate of interest calculated on, the contribu¬ 
 tions of any given number of individuals would ex¬ 
 actly meet the payment of the sums assured on their 
 lives, so that at the last death there would be a sum 
 remaining just adequate to the payment of the last 
 claim. This will be illustrated by the following cal¬ 
 culation. 
 
 The Carlisle Table of Mortality shows that out of 
 every 10,000 persons born, there are 30 alive at the 
 age of 95 ;* and, according to that table, these will die 
 out in ten years. Suppose that 30 persons of that 
 age agree to form themselves into a Society for the 
 
 * Any age may be assumed with the same result, but we take 
 this age in order to simplify the calculation. 
 
LIFE ASSURANCE. 
 
 29 
 
 purpose of assuring £100 on each of their lives, we 
 find on calculation that each would require to con¬ 
 tribute to the common fund (assuming interest at 
 4 per cent.) the annual Premium of £23 : 7 : 5 d. 
 
 Thus at the outset the fund will consist of 
 £23 : 7 : 5 d. X 30—the supposed number 
 
 of Members—or 23.370 X 30 =.£701.100 
 
 Interest thereon for one year,.28.040 
 
 Amount of fund at the end of first year,...729.140 
 
 According to the Carlisle Table, the number 
 of deaths during the first year will be 
 7, and hence will fall be paid out of the 
 fund £100X 7 =.700. 
 
 29.140 
 
 Contributions from the 23 surviving Mem¬ 
 bers, or 23.370 X 23 =. .537.510 
 
 566.650 
 
 Interest thereon for one year,.22.661 
 
 Amount of fund at the end of second year, 589.311 
 
 During the second year, 5 Members will 
 die, hence deduct £100 X 5 =.500. 
 
 89.311 
 
 Contributions from the 18 survivors, or 
 23.370 X 18 =.420.660 
 
 509.971 
 
30 
 
 LIFE ASSURANCE. 
 
 Interest thereon for one year,.20.394 
 
 Amount of fund at the end of third year, 530.365 
 
 During the third year, 4 Members will die, 
 hence £100 X 4 =.400. 
 
 130.365 
 
 Contributions from the 14 survivors, or 
 
 23.370 X 14=.327.180 
 
 457.545 
 
 Interest thereon for one year,.18.296 
 
 Amount of fund at the end of fourth year, 475.841 
 
 During the fourth year, 3 Members will 
 die, hence £100 X 3 =.300. 
 
 175.841 
 
 Contributions from the 11 survivors, or 
 
 23.370 X 11=.257.070 
 
 432M1 
 
 Interest thereon for one year,.17.310 
 
 Amount of fund at the end of fifth year, .450.221 
 
 During the fifth year, 2 Members will die, 
 hence, £100 X 2 =.200. 
 
 250221 
 
 Contributions from the 9 survivors, or 
 
 23.370 X9 =......210.330 
 
 460.551 
 
LIFE ASSURANCE. 
 
 31 
 
 Interest thereon for one year,.18.417 
 
 Amount of fund at the end of sixth year, 478.968 
 
 During the sixth year, 2 Members will die, 
 
 hence £100 X 2 =.200. 
 
 278.968 
 
 Contributions from the 7 survivors, or 
 
 23.370 X 7 =.163.590 
 
 442.558 
 
 Interest thereon for one year,.17.700 
 
 Amount of fund at the end of seventh year, 460.258 
 
 During the seventh year, 2 Members die, 
 
 hence £100 X 2 =.200. 
 
 260.258 
 
 Contributions from the 5 survivors, or 
 
 23.370 X 5 =. .116.850 
 
 377.108 
 
 Interest thereon for one year,.15.078 
 
 Amount of fund at the end of eighth year, 392.186 
 
 During the eighth year, 2 Members will 
 
 die, hence £100 X 2 =.200. 
 
 192.186 
 
 Contributions from the 3 survivors, or 
 
 23.370 X 3 =. ..70.110 
 
 262.296 
 
 Interest thereon for one year,.10.490 
 
 Amount of fund at the end of ninth year, 272.786 
 
32 
 
 LIFE ASSURANCE. 
 
 During the ninth year, 2 Members will die, 
 
 hence £100 X 2 =. .200. 
 
 72.786 
 
 Contribution from the last survivor,.23.370 
 
 "96J56 
 
 Interest thereon for one year,.3.844 
 
 Amount of fund at the end of tenth year, 100. 
 During the tenth year, according to the table, 
 the last Survivor will die, hence deduct 100. 
 
 Such precision as this, however, is not attainable 
 in practice, as the actual rates of mortality and of 
 interest can never exactly coincide with those 
 assumed as the basis of the calculation of the rates 
 of contribution. Accordingly, Assurance Offices have 
 a surplus remaining, after setting aside a sum suffi¬ 
 cient to meet their existing liabilities. This surplus 
 arises chiefly from two sources:— 
 
 1. From the mortality among the Assured being 
 less than that provided for; and, 2, from the funds 
 being invested at a higher rate of interest than that 
 assumed in the calculations;—the rate assumed be- 
 ing 3J, and never above 4 per cent, while, as we 
 have already stated, nearly 5 per cent is generally 
 realised. 
 
LIFE ASSURANCE. 
 
 33 
 
 The fact of the mortality among the Assured be¬ 
 ing always less than that indicated, even by the tables 
 which exhibit the lowest rate of mortality, is readily 
 accounted for, when we consider that the lives are 
 selected , and not taken indiscriminately from the 
 general mass of the people, the mortality of which, 
 in all their varieties of rank and condition, the ta¬ 
 bles represent. The parties to whom Policies are 
 granted are certified to be of sound constitution, 
 in good health, and of temperate habits, at the period 
 of their admission. Besides, a considerable improve¬ 
 ment has taken place in the value of life, since the 
 period over which the observations extend, which 
 form the bases of the usual tables of Mortality; ow¬ 
 ing to the rapid progress of Medicine, the introduc¬ 
 tion of vaccination,* and the general advancement of 
 Physical Science. 
 
 It may be also observed, that, in order to provide 
 
 * For the nine years ending* with 1787, the deaths by Small Pox 
 in Carlisle were 241; the Cow Pox was introduced in that town in 
 1800, and from that time till November, 1812, not one person died 
 there of the Small Pox. 
 
 It has been shown by M. Duvillard, that the introduction of 
 vaccination has increased the mean duration of human life about 
 three years and a half. 
 
 C 
 
34 
 
 LIFE ASSURANCE. 
 
 for the expenses of management, and to meet any 
 extraordinary mortality or fluctuations in the rate 
 of interest, some addition is generally made to the 
 Premiums, as deduced by strict calculation from the 
 Tables of Mortality. 
 
 We are now in a position to understand the cause 
 of the discrepancies which exist among the rates of 
 the different offices. Some adopt the Northampton 
 Table of mortality, and assume a low rate of interest, 
 the result of which is a high rate of Premium; while 
 others adopt the more recent Tables, and calculate 
 on a higher rate of interest, and consequently have 
 a lower rate of Premium. If the Government Table, 
 however, as Mr. Finlaison certifies, and as is borne out 
 by the preceding observations, is “ abundantly safe and 
 practicable/ ’ and ‘ ‘so high as to insure beyond all doubt 
 a surplus of profit,” it is obvious that Offices proceed¬ 
 ing on the Northampton Table charge rates of Pre¬ 
 mium considerably higher than are demanded either 
 by prudence or safety, and that particularly in the 
 case of the younger lives. “ The high rate Societies,” 
 says a recent writer, “proceeding on the Northamp¬ 
 ton Tables, commit an injustice to young and middle 
 aged members in favour of the old; while the need- 
 
LIFE ASSURANCE. 
 
 35 
 
 less amplitude of their funds tends to occasion a less 
 careful use of them in conducting the concern.” It 
 would appear, however, that the Mutual Offices 
 which act on the Northampton Table are beginning 
 to feel the necessity of some alteration, as several of 
 them have recently issued a second and reduced 
 scale of Premiums, at which they profess to grant 
 Assurances without participation in the surplus. 
 
 It may indeed be supposed that, in the case of 
 Mutual Offices, a high rate of Premium is not an 
 evil, as a greater surplus will consequently accrue to 
 the Members. But there seems to be no great ad¬ 
 vantage in exacting exorbitant Premiums, if this is the 
 only purpose to be served by them. Besides, the money 
 is not repaid to the Members in the same pro¬ 
 portions in which it was contributed; and it certainly 
 does seem preferable to secure at once a Policy for 
 a certain amount, even with a somewhat diminished 
 prospect of a large accretion, rather than expend the 
 same Premium in securing a smaller sum, with a view 
 to its ultimate increase by bonuses which the party 
 may never live to realise. 
 
36 
 
 LIFE ASSURANCE. 
 
 DIFFERENT KINDS OF OFFICES. 
 
 Life Assurance offices are of two kinds; Mutual 
 and Proprietary . In Mutual offices, the contribu¬ 
 tions of the Members form a common fund, and after 
 reserving a proportion of the surplus as an addition 
 to the accumulated fund or common stock, the re¬ 
 mainder is periodically allotted to the Members, at 
 intervals of three, five, seven, or ten years, and in some 
 offices annually. The number of years which must 
 elapse before a Member is entitled to a share of the 
 surplus also varies, being in some offices one year, and 
 in others ten years. The Proprietary offices are 
 Joint Stock Companies, established with a view to 
 realise a profit on the capital of the Proprietors or 
 Shareholders, and to them the surplus is accordingly 
 appropriated. Nearly the whole of this class, how¬ 
 ever, have been compelled, by the growing popularity 
 of the Mutual system, to make an approximation to 
 that system, by adopting scales of Premiums, on pay- 
 
LIFE ASSURANCE. 
 
 37 
 
 ment of which the Assured are entitled to a share of 
 the surplus, or a “ participation of profits/' the remain¬ 
 der being appropriated to the Shareholders. These 
 are sometimes called Mixed offices, inasmuch as 
 they partake partly of the nature of a Proprietary 
 and partly of that of a Mutual office. The proportion 
 of the surplus allowed by the several Companies to 
 the Assured varies considerably, being in some Offi¬ 
 ces as high as nine-tenths of the profits, while in 
 others only one-fourth is allowed. In some cases 
 the whole profits of the participation scale of Pre¬ 
 miums are allotted to the Assured, after deducting 
 the expenses of management, and a certain per cent- 
 age to the shareholders. 
 
 For each of these systems, the superiority is claimed 
 by their respective advocates. The Proprietary sys¬ 
 tem is preferred by some, from the security furnished 
 by the capital to the Assured for the payment of the 
 claims under their Policies; while the supporters of 
 the Mutual system hold, on the other hand, that 
 there is no necessity for the guarantee of a capital, 
 and the appropriation of any part of the surplus to 
 the Shareholders is just so much withdrawn from 
 the pockets of the Assured, who are thus burdened 
 
38 
 
 LIFE ASSURANCE. 
 
 with an unnecessary expense. Undoubtedly, the 
 large profits of Proprietary offices furnish a strong 
 argument in support of the Mutual system, and ex¬ 
 perience speaks loudly in its favour. 
 
 The first Society established in Britain, viz. the 
 Amicable, was on the Mutual principle—and among 
 all those which have been since established, not 
 a single instance of failure has occurred. The Equita¬ 
 ble Society, which has been upwards of eighty years 
 in existence, commenced without any capital what¬ 
 ever , but merely with the humble contributions of a 
 few individuals, and is now possessed of an accumu¬ 
 lated fund amounting to upwards of Twelve Millions 
 sterling ! Some, however, entertain the opinion that 
 Mutual societies must have a capital at the outset, 
 to meet the claims which may arise before a fund 
 shall have accumulated by the contributions of the 
 Members; but it will be seen, on consideration of the 
 principles on which the calculations proceed, that, if 
 the Premiums are adequate to the risks undertaken, 
 no danger attends even the infancy of a Mutual 
 Society. 
 
 “The amount of Premium taken at every age is 
 
LIFE ASSURANCE. 
 
 39 
 
 fixed on the principle of an average. Suppose a 
 person aged 35 wished to insure his life for one 
 year for £100, the Premium he would require to 
 pay would be £1 : 5s. If next year he wished to 
 renew the Assurance for another year , the Premium 
 would of course be increased, (he being a year older,) 
 and this increase would go on from year to year, if 
 he still wished to effect a new annual Assurance, un¬ 
 til it would amount to a considerable sum. Now if, 
 instead of this plan, the same person were at entry 
 to agree to pay a fixed Premium during his whole 
 life, it is obvious, that, in order to equalise its 
 amount, the excess of the Premiums payable by 
 the former plan, during the latter part of life, must 
 be added to the amount of those for its earlier stages, 
 and the consequence would be, that the first Premi¬ 
 ums charged would be higher than necessary. In 
 fact, in the case supposed, the rate, instead of £1 :5s. 
 would be £2 : 6 :10 d. Hence the Premiums for the 
 first year of an Assurance Society are not only 
 adequate to, but greatly exceed the risks; and, con¬ 
 sequently, the income must for many years greatly 
 exceed the expenditure. Suppose, for example, 100 
 Members to enter for an Assurance of £100 each at 
 the age of 35. At the end of one year the Premi- 
 
40 
 
 LIFE ASSURANCE. 
 
 urns paid will amount to £234. By the (Govern¬ 
 ment) Table, we would expect that one of these Mem¬ 
 bers would die in the course of the year; but, having 
 been all so recently certified to be in good health, 
 there is every chance that no death will happen in 
 that time. But even if one should die in the second 
 half of that year, another year’s Premiums would be 
 due by the remaining Members before the claim would 
 become payable; so that the sum prepared to meet 
 this single claim would be £466, or almost enough 
 for five deaths, without looking to the increase of 
 business in that time.” 
 
 Accordingly, Professor De Morgan observes, in 
 his Treatise on Probabilities, that “the risk at the com¬ 
 mencement is not great in character, and small in 
 amount, and the quantity of risk diminishes so much 
 faster than the amount increases, that it may be 
 safely said, there is nothing in the commercial world 
 which approaches, even remotely, to the security of a 
 well established and prudently managed Insurance 
 office.” 
 
 It is equally erroneous to suppose that the risk 
 becomes greater as the Society proceeds. Those 
 
LIFE ASSURANCE. 
 
 41 
 
 who entertain this idea, forget that the means of 
 meeting the gradually increasing risks are also in¬ 
 creasing, and that the latter cannot accumulate in 
 a greater ratio than the- former, unless the rate of 
 Premium is inadequate. It will be seen, on exami¬ 
 nation of the statement on pages 28—32, and con¬ 
 sideration of the principles involved in it, that the re¬ 
 sult is the same in this respect, whether the Society 
 consist of lOOMembers or of100,000. Hence “ afailure 
 can only arise,” says Mr.Babbage, “ by animprovident 
 consumption of the funds, or by employing a Table 
 of Premiums inadequate to the risk undertaken.” 
 
 It may here be observed, that the Policy-holders 
 of a Proprietary Company, who participate in the 
 profits, are generally held to be responsible as partners 
 of the Company for its engagements; and, on the 
 same principle, the Members of Mutual Offices 
 would be liable in all questions with third parties . 
 Should the funds prove insufficient to meet the claims 
 of the Members themselves, however, they are not lia¬ 
 ble to be called on, as is sometimes supposed, to eontri- 
 but Qprorata in respect of such insufficiency; the Deed 
 of Constitution, as well as the Policy itself, generally 
 providing that the funds only shall be liable. But 
 
42 
 
 LIFE ASSURANCE. 
 
 Life Assurance is now based on such sound mathe¬ 
 matical principles, and so far remote are all such 
 contingencies, that the responsibility is merely no¬ 
 minal , and, unless under gross mismanagement, not 
 even the shadow of risk exists. 
 
LIFE ASSURANCE. 
 
 43 
 
 MODES OF DISPOSING OF THE SURPLUS. 
 
 In the division of the surplus among the Mem¬ 
 bers of a Society, such is the variety of modes adopted, 
 and in many cases the points of difference are so 
 minute, that to state them in detail would be an ardu¬ 
 ous task, and any classification is scarcely practicable; 
 but as the modes of division are generally explained 
 in the prospectuses of the several Offices, it is the 
 less necessary to enter at length into the subject. 
 We shall therefore attempt nothing more than a 
 statement of the modes of division which have been 
 adopted by the Scottish Mutual Offices; and, before 
 doing so, we shall advert to the peculiar arrange¬ 
 ments of the Equitable Society of London. 
 
 The London Equitable Society, prior to the 31st 
 December, 1816, divided the surplus according to 
 the amount and the duration of the Policy, reck¬ 
 oning at each period of division from the date of 
 the Policy. In that year, however, a bye-law was 
 
44 
 
 LIFE ASSURANCE. 
 
 made, by which it was provided that no retrospec¬ 
 tive addition should be made to any Policy granted 
 after the 31st December, 1816, until the number of 
 Members living at that date should be reduced to 
 5000; but when such reduction should take place, 
 those who entered after the above date should be 
 transferred, in the order of their entry, to the privi¬ 
 leged class, the number of Policies of that class being 
 always kept at 5000; and it was further provided, 
 that in regard to the bonus to be declared on Poli¬ 
 cies granted after the 31st December, 1816, such 
 bonus was not to be reckoned from the date of the 
 Policy, as was the case prior to that date, but from 
 the date of their entering into the privileged number 
 of 5000. As an example of the operation of this 
 law, it may be stated, that Policies opened in 1817 
 did not begin to enter the privileged class of 5000 
 till 1831, and the bonuses thereafter allotted to them 
 were reckoned only from the period of their admis¬ 
 sion to the privileged number. 
 
 A contingent prospective addition, or a bonus de¬ 
 clared prospectively, and contingent on the Mem¬ 
 ber’s death before the next period of investigation, 
 is also allowed; being at the same rate as the bonus 
 
LIFE ASSURANCE. 
 
 45 
 
 declared at the preceding investigation, and reckoned 
 not from the date of entering the privileged class, 
 but from the date of the preceding investigation. 
 Each division takes place decennially, and one-third 
 of the surplus is always reserved. 
 
 The Mutual Offices in Scotland are the Scottish 
 Widows’ Fund, the Scottish Amicable, the Scottish 
 Equitable, and the Scottish Provident Institution. 
 
 The Scottish Widow’s Fund Society, after setting 
 aside one-third of the surplus as a guarantee fund 
 until the next period of investigation, allocate the 
 remainder according to the amount and duration of 
 the Policy, reckoning at each period of investigation 
 from the date of the preceding investigation; the 
 bonus at each investigation being declared not on 
 the original amount of the Policy only, but also on 
 the previous bonuses. The investigations take place 
 septennially, and Policies which emerge within five 
 years of their dates are not entitled to any addition. 
 A contingent prospective bonus is also allowed, or 
 a bonus on all Policies which may lapse by the death 
 of the holder before the date of the next investiga¬ 
 tion. For example, at the last investigation, 31st 
 
46 
 
 LIFE ASSURANCE. 
 
 December, 1845, a bonus was declared on Policies 
 issued previous to 1st January, 1839, corresponding 
 to 2 per cent, per annum, for the seven years from 
 1st January, 1839, till 1st January, 1846, being 14 
 per cent, in all, upon the accumulated amount of the 
 original sums insured and additions thereto previ¬ 
 ously declared. To Policies issued between 1st Janu¬ 
 ary, 1839, and 31st December, 1845, inclusive, an 
 addition was declared, corresponding to 2 per cent, 
 upon the sum insured, for each annual Premium paid 
 on such Policies respectively, except such as should 
 lapse within five years from their respective dates. 
 And to those Policies, whensoever issued^ which may 
 merge between 1st January, 1846, and 31st Dec¬ 
 ember, 1852, with the exception above stated, an ad¬ 
 dition was provided for, corresponding to 2 per cent, 
 upon the accumulated amount of the original sums 
 insured and additions previously declared, for every 
 annual Premium paid thereon during said period. 
 
 It must be observed, that all these additions are re¬ 
 versionary , being payable only at the death of the 
 Policy-holder; but the present value thereof will be 
 paid over by the Society, or applied in reduction of 
 future Premiums, in the option of the party. 
 
LIFE ASSURANCE. 
 
 47 
 
 The mode of division of the Scottish Amicable 
 Society is the same as that of the Scottish Widows’ 
 Fund. 
 
 When the Scottish Equitable Society was first 
 established, their mode of division was not on the 
 same principles as at present, the following regula¬ 
 tions having been adopted in 1838. It was then ar¬ 
 ranged that the first investigation should be made at 1 st 
 March, 1841, and triennially thereafter. That at each 
 investigation, two-third parts of the surplus should be 
 allotted in vested additions to Policies of not less than 
 five years’ standing, and the remaining one-third re¬ 
 served for contingent prospective additions. These 
 additions to be regulated as follows: that at the first 
 investigation, on 1st March, 1841, two-thirds of the 
 surplus should be allotted in vested additions to such 
 Policies as were effected on or before 1st March, 1836; 
 that at the second investigation, 1st March, 1844, 
 two-thirds of the surplus should be allotted in vested 
 additions, as follows:—to Policies effected on or be¬ 
 fore 1st March, 1836, on the sums assured, and on 
 the vested additions made thereto at 1st March, 
 1841; and to Policies effected after 1st March, 1836, 
 and on or before 1st March, 1839, on the amount 
 
48 
 
 LIFE ASSURANCE. 
 
 assured, and according to the number of Annual 
 Premiums which have fallen due. At the third inves¬ 
 tigation in 1847, the same principles are to be 
 followed as at the second division. 
 
 It will be observed that the contingent prospective 
 additions are not made, as in the Widows’ Fund, out 
 of the two-thirds of the surplus, but out of the re¬ 
 maining one-third , which in that Society is reserved 
 entire as a guarantee fund until the following inves¬ 
 tigation. In the Equitable Society, any portion of 
 the one-third which may not be required for these 
 additions, alone constitutes the reserved fund. The 
 divisions take place triennially, and not septennially. 
 
 A peculiar mode of division has been adopted by 
 the Scottish Provident Institution. It has been ob¬ 
 jected to the principle adopted by the Offices referred 
 to, that the representatives of a person assured for 
 £1000, for example, and dying in the eighth year of 
 the assurance, would receive not only the sum in the 
 Policy, but an additional sum in name of bonus or 
 profit. The Premiums he has paid, however, may 
 not amount to a fifth of the sum assured, and, con¬ 
 sequently, the office has lost by the assurance. Any 
 
LIFE ASSURANCE. 
 
 49 
 
 bonus, therefore, allotted to a Policy under such 
 circumstances, is just so much taken from the other 
 Policy holders, who have, by their longer contribu¬ 
 tions, created the surplus; and as they, by surviving 
 the average duration of life, contribute to meet the 
 loss occasioned by those who fall short of it, it is 
 not considered equitable that they should go beyond 
 this, and also contribute to pay them a bonus. 
 Accordingly, in the Scottish Provident Institution, 
 the surplus is reserved for those who have paid such 
 amount of Premiums as, when accumulated at 4 per 
 cent, compound interest, shall be equal to the 
 amounts of their respective Policies. The allocation 
 is made according to the value of each Policy, and 
 takes place at every septennial investigation. In 
 this way, a comparatively small surplus on the whole 
 fund will afford a large bonus to those to whom it 
 is appropriated, as it is not distributed indiscrimi¬ 
 nately among all who have been assured beyond a 
 short period—as five years, or even less—but is ac¬ 
 cumulated for those who have become entitled to it 
 by the greater amount of their contributions. 
 
 D 
 
50 
 
 LIFE ASSURANCE. 
 
 OBJECTIONS. 
 
 Notwithstanding the many advantages of Life 
 Assurance, objections are sometimes urged against 
 it, the groundlessness and futility of which a better 
 acquaintance with the subject would go far to evince. 
 We hear it objected, for example, that Life Assur¬ 
 ance is a species of gambling, and to insure one’s 
 life is not quite in consonance with religious duty; 
 that the Offices frequently endeavour to raise up 
 questions and difficulties, when claims come to be 
 made against them; that it is better to lay aside the 
 money in some other way than by paying it to an 
 Assurance Office; that something may happen to pre¬ 
 vent the continuance of the annual payments to the 
 Office; that the demands of the present do not admit 
 of any provision for the future; that, for mercantile 
 men, at least, Life Assurance is not at all adapted; 
 while by many it is strongly suspected, that somehow 
 the Offices are always the gainers in the long run! 
 To this formidable phalanx of objectors, we beg to 
 submit the following considerations. 
 
LIFE ASSURANCE. 
 
 51 
 
 As to the first objection, it may be observed, that 
 the laws which govern human life in the aggregate 
 are so uniform, and the practice of Life Assurance 
 is based on principles so accurate, that it cannot be 
 said to partake of the nature of gambling; for “a 
 gambler,” says Professor De Morgan, “ ceases to be 
 such when he makes his stakes bear a proper pro¬ 
 portion to his capital, and takes no hazards which 
 are unduly against him.” The Deity has estab¬ 
 lished the laws which govern human mortality, as 
 well as all the other arrangements of nature, and, in 
 availing himself of these laws for the purposes of 
 Life Assurance, man is merely bending to his own 
 use the materials which Providence has placed within 
 his power; he is here as properly and truly acting 
 in his legitimate province, as the “ servant and inter¬ 
 preter of nature,” as when he subjugated to his 
 control the expansive power of that elastic fluid 
 which is now effecting such mighty changes through¬ 
 out the world. The objection in question is thus 
 itself at variance both with enlightened reason and 
 true religion, and it may be ranked in the same 
 category with that raised against the decennial cen¬ 
 sus, when first introduced, viz. that numbering the 
 people was contrary to scripture! 
 
52 
 
 LIFE ASSURANCE. 
 
 But it is sometimes alleged that Assurance Offices 
 are in the practice of raising frivolous objections to 
 claims arising under their Policies, and that they 
 are much addicted to litigation. Now, the Offices 
 are well aware how seriously such procedure would 
 affect their own interests ; and this alone is an 
 ample security against the practice alluded to. 
 Indeed, so far is this charge from being well- 
 founded, that, were Assurance Offices in all cases 
 to act in strict accordance with law, many claims 
 might be rejected, which, in a spirit of justice and 
 liberality, are promptly discharged. For instance, 
 in the fourteenth year of the reign of Geo. III. an 
 Act was passed (cap. 48) by which it was declared 
 that “ no Insurance shall be made by any person or 
 persons, body politic or corporate, on the life or 
 lives of any person or persons, wherein the person 
 or persons on whose account such Policy or Policies 
 shall be made, shall have no interest; and that 
 every such Assurance shall be null and void, to all 
 intents and purposes whatsoever.” Now, under 
 this Act, all claims by third parties—unless they 
 can prove a pecuniary interest in the life assured— 
 may be paid or not, at the option of the Office; 
 and, under the same Act, an Office could recover a 
 
LIFE ASSURANCE. 
 
 53 
 
 sum even after it had been paid to a third party, if 
 it could be proved that such third party had re¬ 
 ceived the amount of his interest in the life assured, 
 from another quarter, after such payment had been 
 made by the Office. The Assurance Offices, how¬ 
 ever, decline the benefit of this Act, and invariably 
 pay the claims of third parties, provided there is 
 no fraud in the case, without demanding any proof 
 of an existing interest in the life assured. The fol¬ 
 lowing case may serve as an example:—An action 
 was raised by Godsoll and others against the Direc¬ 
 tors of the Pelican Insurance Company, to recover 
 the amount of a Policy of Assurance for £500, 
 which they had effected on the life of the Right 
 Honourable William Pitt, in whose life they had a 
 bona fide interest as creditors ; but, in consequence 
 of the amount of the debt due to the pursuers hav¬ 
 ing been paid by the executors of Mr. Pitt, before 
 the action was raised, the Office resisted the claim. 
 A verdict was returned in favour of the Office, in 
 accordance with the Act referred to, of which, how¬ 
 ever, the Directors declined to avail themselves, 
 and paid the full amount to the pursuers before 
 leaving court. 
 
54 
 
 LIFE ASSURANCE. 
 
 So far is the charge in question from being well- 
 founded, that every approach to litigation is gene¬ 
 rally avoided; and, in the event of any question 
 arising, it is the practice with many Offices to sub¬ 
 mit the matter to the decision of arbiters, mutually 
 chosen by the parties ; and, in some cases, to a 
 committee chosen from the members or share¬ 
 holders themselves. 
 
 Some consider it better to place a certain amount 
 annually in a Savings’ Bank, or other Bank, instead 
 of paying it to an Assurance Office. Such indivi¬ 
 duals, however, altogether overlook the uncertainty 
 of life; and, it may be asked, what provision this 
 mode of accumulation would make for a family, 
 should death step in at the end of one, or two, or 
 three years, and lay his arrest upon the scheme ? 
 In order to accomplish the object in view by any 
 such means, a man must hold a guarantee from that 
 inexorable creditor that he will make no demand 
 upon him for a certain definite period, “ to be nomi¬ 
 nated in the bondand hence the desirableness 
 and importance of a scheme of accumulation which 
 provides against the uncertainty of life—as under 
 that condition alone can the provision be efficient 
 
LIFE ASSURANCE. 
 
 55 
 
 and complete. Such a scheme has been found in 
 the system of Life Assurance,—a system which 
 secures an immediate provision, although the party 
 should not survive a single hour after the payment 
 of the first premium,—which renders what was be¬ 
 fore a contingency, depending on a thousand cir¬ 
 cumstances, an absolute certainty, and thus recom¬ 
 mends itself to the affectionate husband, the tender 
 parent, and the generous philanthropist. 
 
 There is another advantage in Life Assurance 
 which is not inherent in any other accumulating 
 scheme. When a person enters with an Office, he 
 knows he has a certain sum to provide periodically 
 to meet the premium, and he has thus a strong in¬ 
 centive to regulate his expenditure accordingly. 
 But in the case of a Bank, or otherwise, the amount 
 to be laid aside is optional, as well as the periods or 
 intervals of payment; and thus he may be induced 
 not only to diminish the annual amount which he 
 originally proposed to himself to deposit, but he 
 may even trench upon that already deposited. Life 
 Assurance thus acts as a stimulus to economical and 
 provident habits. 
 
56 
 
 LIFE ASSURANCE. 
 
 There are some instances in which parties, other¬ 
 wise disposed to assure, keep aloof through fear 
 that, owing to a change of circumstances, they may 
 not be able to continue the payment of the premiums. 
 This, however, were to refrain from attempting a 
 duty because we may not be able fully to accomplish 
 it. Were all to act on this principle, as compara¬ 
 tively few can attain to a certainty in the matter in 
 question, Life Assurance, with its countless train 
 of advantages, would soon wither and expire. If, 
 therefore, a reasonable probability exists that an 
 individual will be able to keep his Policy in force, 
 he is not warranted in neglecting Life Assurance. 
 It should also be observed that the Offices purchase 
 back their Policies from parties who become unable 
 to continue the payment of the premiums; the 
 value of the Policy in such cases being, of course, 
 modified by the circumstance, that the Office must 
 reserve a compensation adequate to the risk which 
 it ran while the Policy continued in force—viz. the 
 risk of being called on, by the death of the assured, 
 to pay down the whole sum in the Policy. Thus, 
 in the case of lapsed Policies, the Office is a gainer 
 only by that proportion of the premiums paid 
 which exceeds the premium for a temporary Assur- 
 
LIFE ASSURANCE. 
 
 57 
 
 ance during the period the Policy was in force. 
 Hence it is that the price obtained for a Policy is 
 always lower than the amount of the premiums 
 which have been paid on it. Farther, as a Policy 
 is a document which can be made available as a 
 security for pecuniary advances, by means of it 
 a sum may be raised to meet the exigencies of a 
 pressing emergency; and thus the individual may 
 be enabled not only to continue his premiums, but 
 to retrieve his circumstances* 
 
 It is also objected by many that they cannot 
 spare any thing from their income for such a pur¬ 
 pose ; but in numberless instances there is no sound¬ 
 ness in the objection. For how can this be a valid 
 reason for utterly neglecting the future welfare of 
 a family which at present is maintained in comfort 
 and affluence? and, even in humbler circumstances, 
 is not their preservation from future poverty and 
 wretchedness worthy of a present effort and a pre¬ 
 sent sacrifice ? How can an affectionate parent 
 contemplate, even in prospect, the objects of his 
 tenderest regard plunged at once from all the com¬ 
 forts with which they are surrounded, into the 
 depths of a poverty all the horrors of which are 
 
58 
 
 LIFE ASSURANCE. 
 
 unknown; and what must be the feelings of the 
 man who, wrapped up in the full enjoyment of the 
 present, glides gaily down the stream of life, with 
 the knowledge that, when his own voyage is over, 
 his family may be driven from their course, and be¬ 
 come a miserable and hopeless wreck! 
 
 Mercantile men sometimes think Life Assurance 
 is not a proper thing for them —that it is only for 
 professional men, and others having fixed incomes. 
 It is objected by some, that they may become em¬ 
 barrassed in circumstances, and thus forfeit their 
 Policies to their creditors: while others anticipate 
 a provision to their families by periodical additions 
 to their capital, and consider their money more 
 profitably invested in their business. Thus some 
 object because they may be unfortunate , and others 
 because they may be fortunate in future life. In 
 addition to what has been already remarked, we 
 would suggest to the former, that, by effecting the 
 Assurance in name of trustees, even after mar¬ 
 riage, and while in solvent circumstances, the evil 
 alluded to may be legally and honourably avoided, 
 and the Policy saved. The latter class of ob¬ 
 jectors forget altogether the risk of premature 
 
LIFE ASSURANCE. 
 
 59 
 
 death, against which their scheme makes no 
 provision. The merchant does not think that 
 the premiums paid for Fire or Marine Insurance 
 would be more profitably employed in his business. 
 Were he certain, indeed, that his stock should not 
 be burned in the warehouse, or his cargo lost at 
 sea, the premiums might be saved; and, in the 
 same way, if he live till he reach the anticipated 
 accumulation, the premiums of Life Assurance may 
 be saved. Farther, if no fire take place, and no 
 vessel be lost, the premiums paid to secure him 
 against these contingencies may, in one sense, be 
 said to be lost; but not so in Life Assurance. The 
 events against which the payment of the one class 
 of premiums is intended to provide, only may hap¬ 
 pen, while that event against which the payment of 
 the other premium provides must happen; hence, 
 instead of being less, there is much greater reason 
 why the merchant should effect an Assurance on 
 his life than on his warehouse or his vessel. How 
 palpable then is the imprudence, and how inconsis¬ 
 tent the conduct of the man, who unhesitatingly pays 
 from 5 s. to 25 s. per cent, or upwards, to secure his 
 property from a single casualty , and neglects to 
 secure his family against the unimaginable evils 
 
60 
 
 LIFE ASSURANCE. 
 
 which may ensue upon the expiry of a life which is 
 exposed to so many casualties, and held by a tenure 
 so precarious, although such security may be at 
 once obtained for 80s. and in many cases for less 
 than 40s. per cent! 
 
 If the mercantile man be not in the present pos¬ 
 session of property to make an adequate provision 
 for his wife or children, it is difficult to see why he, 
 as well as others, should not avail himself of Life 
 Assurance, by which he can at once place himself 
 in the position of a party who has accumulated a 
 capital—so far at least as it is available to his rela¬ 
 tives or others at his death. 
 
 The objection, that the Offices are generally the 
 gainers, is almost too ridiculous to be noticed. It 
 is true, that those who live beyond the average du¬ 
 ration of life contribute to meet the loss arising from 
 those who fall short of it. This, however, should 
 not be viewed as a loss to those who continue to 
 pay so long, but as the price paid for the probability 
 of their lives dropping at an earlier period, in which 
 event their heirs would have been the gainers. All 
 the Assured have, one with another, equal chances 
 
LIFE ASSURANCE. 
 
 61 
 
 of being gainers or losers; and this shows the nicety 
 of Life Assurance, which, while it does justice to all, 
 affords relief to the actually unfortunate, and ap¬ 
 portions the loss thereby occasioned equally among 
 the others who are more fortunate. 
 
 Having thus noticed the objections generally 
 urged against Life Assurance, we may here briefly 
 advert to the grounds on which an opinion may be 
 formed of the eligibility of an Office; as, among the 
 many which so confidently appeal to the public, and 
 hold forth their respective advantages, it cannot be 
 supposed that all are equally eligible for an intending 
 Assurer. And, in the first place, it may be observed, 
 that age is a presumption in favourof anOffice,although 
 it by no means follows that old Offices are generally 
 preferable to those more recently established; as 
 the science has of late years made such rapid pro¬ 
 gress, and the data on which it proceeds have been 
 so much more correctly ascertained, that several of 
 the modern Offices can hold out advantages which 
 are not to be found in all the older establishments. 
 Age alone, therefore, is not a sufficient ground of 
 preference. It might be supposed that the respec¬ 
 tability of the Directors would be a guarantee for 
 
62 
 
 LIFE ASSURANCE. 
 
 the character of the Office. This, however, unfor¬ 
 tunately is not always the case, as there have been 
 instances where parties of the highest respectability 
 have permitted their names to be connected with 
 Offices, without using the precaution of informing 
 themselves as to the soundness of their principles, 
 or the nature of their constitution. A better crite¬ 
 rion would be, a careful perusal of the prospectuses 
 and reports, so as to learn the rate of Premium, the 
 mode of disposing of the surplus, as well as that of 
 investing the funds, and the past progress of the 
 Institution. Instead of adopting some such course 
 as this, however, it is to be feared that many are 
 influenced in their choice of an Office by connection, 
 or friendship, or some other incidental circumstance. 
 As to the Premiums of a Mutual Office, a simple 
 mode of arriving at a judgment of their sufficiency 
 would be, to ascertain if any well ]niovm Proprietary 
 Office acts on Premiums equally low; as, if the latter 
 can conduct the business, and realise a profit on 
 their capital, at a certain scale of Premiums, it is ob¬ 
 vious that a Mutual Office, proceeding on somewhat 
 similar Premiums, may be expected to yield a con¬ 
 siderable surplus to the members. The case of the 
 “Independent and West Middlesex Insurance Com- 
 
LIFE ASSURANCE. 
 
 63 
 
 pany” shows the importance of correct views on 
 this point, as well as the necessity which exists for 
 a wider diffusion of information on the subject of 
 Life Assurance; the large drafts made upon the 
 ignorance of the public by this unparalleled Joint 
 Stock swindling Company, having, unfortunately, 
 been too promptly accepted. 
 
64 
 
 LIFE ASSURANCE. 
 
 ADVANTAGES. 
 
 To all ranks of society, Life Assurance extends 
 its advantages. The most exalted may and have 
 availed themselves of its benefits, which are equally 
 accessible to the humbler classes of the community. 
 A Policy for so small a sum as £50 may be obtained; 
 and the artisan, at the age of 38, may secure £100 
 for his family at the expense of a shilling a-week, 
 which may be lodged in a Savings’ Bank, and drawn 
 out annually, to be paid over to an Assurance Office. 
 The following Table shows the rate per week of an 
 Assurance of £100 on a single life, at every age 
 from 20 to 50 inclusive. 
 
 Age. 
 
 Amount. 
 
 Age. 
 
 1 
 
 { Amount. 
 
 Age. 
 
 Amount. 
 
 20 
 
 £0 
 
 0 
 
 8 
 
 31 
 
 £0 
 
 0 
 
 101 
 
 41 
 
 £0 
 
 1 
 
 11 
 
 21 
 
 0 
 
 0 
 
 8-1 
 
 32 
 
 0 
 
 0 
 
 11 
 
 42 
 
 0 
 
 1 
 
 11 
 
 22 
 
 0 
 
 0 
 
 81 
 
 33 
 
 I 0 
 
 0 
 
 111 
 
 43 
 
 0 
 
 1 
 
 If 
 
 23 
 
 0 
 
 0 
 
 8f 
 
 34 
 
 o 
 
 0 
 
 111 
 
 44 
 
 0 
 
 1 
 
 21 
 
 24 
 
 0 
 
 0 
 
 9 
 
 35 | 
 
 0 
 
 0 
 
 111 
 
 45 
 
 0 
 
 1 
 
 2| 
 
 25 
 
 0 
 
 0 
 
 9 \ 
 
 36 1 
 
 0 
 
 1 
 
 0 
 
 46 
 
 0 
 
 1 
 
 3J 
 
 26 
 
 0 
 
 0 
 
 91 
 
 37 | 
 
 0 
 
 1 
 
 01 
 
 47 
 
 0 
 
 1 
 
 4 
 
 27 
 
 0 
 
 0 
 
 9f 
 
 38 
 
 0 
 
 1 
 
 01 
 
 48 
 
 0 
 
 1 
 
 4f 
 
 28 
 
 0 
 
 0 
 
 10 
 
 39 
 
 0 
 
 1 
 
 Of 
 
 49 
 
 0 
 
 1 
 
 51 
 
 29 
 
 0 
 
 0 
 
 10J 
 
 40 
 
 0 
 
 1 
 
 1 
 
 50 
 
 0 
 
 1 
 
 0} 
 
 30 
 
 0 
 
 0 
 
 101 
 
 
 
 
 
 
 
 
 
LIFE ASSURANCE. 
 
 65 
 
 Although the primary object of Life Assurance is 
 to provide for relatives who would otherwise be left 
 destitute at the death of those on whom they are 
 dependent, there are numerous other purposes to 
 which it is applicable. A person, for example, to 
 whom an annuity is payable during the life of 
 another person, may apply a portion of the annuity 
 in effecting an assurance on that person’s life, and 
 thus at his death he obtains a sum in lieu of the an¬ 
 nuity which he has lost, by the failure of the life on 
 which it depended. A parent may secure a sum to 
 a child, payable when he attains a given age, and 
 by this means a capital may be provided for com¬ 
 mencing business, or for other purposes. Such as 
 are apprehensive of being without support in old 
 age, may purchase an annuity, to commence when 
 they reach 50, 55, or 60 years of age. Or a sum 
 may be assured, so as to become payable at death, 1 
 whenever that may happen, or to the assured him¬ 
 self, should he attain a given age; and in this way 
 a simple assurance and a provision for old age are 
 combined. A debt may be contracted which the 
 debtor is bound to pay at a certain period, but the 
 discharge of which is dependent on his life, and in 
 this case the creditor may secure the debt by effect- 
 
 E 
 
66 
 
 LIFE ASSURANCE. 
 
 ing a temporary assurance on the debtor’s life, and, 
 in the event of his not surviving the period of pay¬ 
 ment, the creditor receives the amount of the debt 
 from the Office. Life Assurance also affords to no¬ 
 blemen and gentlemen of property the means of 
 providing for the younger members of the family. 
 To the farmer it may prove of essential utility, as 
 by an assurance on his life he may provide for his 
 successor the means of carrying on the farm, and 
 thus the necessity may be avoided of relinquishing 
 land, in the improvement of which large sums may 
 have been expended. It is also an important auxi¬ 
 liary in facilitating the arrangement of contracts of 
 marriage. 
 
 The following cases, illustrative of some of the 
 advantages of Life Assurance, serve to show the 
 » variety of modes in which it may be applied. 
 
 Two young men entered into partnership with a 
 capital of £1000 each. In the deed of copartnery 
 they stipulated to insure their joint lives for £1000, 
 to be paid out of the trade for the benefit of the 
 survivor; at the expiration of four years after the 
 commencement of the business, one of them died. 
 
LIFE ASSURANCE. 
 
 67 
 
 and the survivor, in consequence of the Policy of 
 Assurance, was enabled to refund the portion of 
 capital belonging to the deceased without injury to 
 his business. 
 
 A young man by his industry was sufficiently 
 advanced in business to be able to support his aged 
 parents; but fearing lest after his death they should 
 come to want, he insured his life for £1000, which 
 cost about £25 per annum. He died ten years before 
 either of his parents, and at his death he directed 
 that the proceeds of his Policy should be sunk in 
 the purchase of an annuity during the continuance 
 of both their lives, which produced them £95 per 
 annum. 
 
 A tradesman, in the habit of giving long credit to 
 a number of gentlemen of fortune, becoming alarmed 
 at the extent of his book debts, it was recommended 
 to him to insure the lives of his principal debtors, 
 which he did, at an average of about 2\ per cent.; 
 several of the persons so insured died in embarrassed 
 circumstances, when by this means he obtained pay¬ 
 ment of his debts. 
 
68 
 
 LIFE ASSURANCE. 
 
 A young man of industrious habits wished to en¬ 
 ter into business, but had no capital; several persons, 
 who had confidence in his integrity and talents, 
 agreed to give him credit without reference to time, 
 on condition that he insured his life for their benefit, 
 in case of his death. With this assistance he was 
 enabled to commence business, and paid off the loan 
 at an early period. 
 
 A young mechanic, being a good workman, earned 
 about £2 a week; out of this he regularly put 3s. 
 into a Savings’ Bank, which at the end of the year 
 amounted to nearly £8, and with this sum he in¬ 
 sured his life for £350. At the age of 26 he died; 
 the £350 he directed to be sunk in an annuity for 
 the life of his wife and child, which produced during 
 their joint lives about £21 per annum. 
 
 A tradesman, when young, insured his life for the 
 benefit of his family; but the whole of them dying 
 before him, he had no inducement to continue his 
 Assurance, and, on applying at the office, the Company 
 purchased his Policy, by allowing him an annuity 
 during his own life. 
 
LIFE ASSURANCE. 
 
 69 
 
 Such are a few examples of the various modes in 
 which Life Assurance may be applied. The neces¬ 
 sary procedure in all cases is extremely simple, and 
 may be readily learned on inquiry at any of the 
 Offices. 
 
 The Premiums may be made payable yearly, 
 half-yearly, or quarterly; a scale of Premiums, as¬ 
 cending or descending in amount, in periods of three, 
 five, seven, or any other number of years, may also 
 be adopted: or the Premium may be made payable so 
 as to cease entirely in a certain number of years, 
 thereby relieving the Assured of the payments in 
 old age. From fifteen to thirty days are allowed 
 for payment of the Premiums after they become 
 due; and when a Policy is not renewed within these 
 days, it becomes void. Within a certain period there¬ 
 after, however, generally three to six months, it may 
 still be renewed, on the party paying a small fine, and 
 producing evidence of unimpaired health. There is 
 no annual duty payable, as in the case of Fire Insu¬ 
 rance—the only expense of this nature being that 
 of the stamp on the Policy, when the Assurance is 
 first effected. 
 
70 
 
 LIFE ASSURANCE. 
 
 Apart from the consideration of those duties which 
 devolve on man as an immortal being, few duties can 
 be more imperatively binding than that which calls 
 on a parent to make some provision for the future 
 necessities of those who may one day be deprived 
 of his support. It is a duty enjoined alike by rea¬ 
 son and by revelation; and no man can be said to 
 provide “for those of his own household,” if he do 
 not make some such provision as that which Life 
 Assurance is intended to secure. Such, however, 
 is the prevalence of procrastination, the tendency 
 to live for the present , and the reluctance to antici¬ 
 pate the future , that even many, who are alive to 
 the importance of Life Assurance, do not avail them¬ 
 selves of its advantages, quieting their consciences 
 in the meantime with the vague intention of assur¬ 
 ing at some future period—forgetting that, before 
 the arrival of another birth day, some one of the 
 countless shafts which are ever on the wing may 
 strike them, Avith all their unexecuted resolutions, 
 to the dust; and thus do they add to the sorrows 
 of a dying bed,* and leave their bereaved relatives 
 
 * A gentleman lately deceased, having, on his death-bed, desired 
 the attendance of his legal adviser, observed, with striking empha¬ 
 sis, when he arrived, that two things were pressing heavily on his 
 
LIFE ASSURANCE. 
 
 71 
 
 to the tender mercies of a selfish world. “ When 
 our design/’ says Dr. Johnson, “ terminates only in 
 our own satisfaction, the mistake is of no great im¬ 
 portance ; for the pleasure of expecting enjoyment 
 is often greater than that of obtaining it; but when 
 others are interested in an undertaking, nothing is 
 more unworthy either of wisdom or benevolence 
 than to delay it from time to time, or to forget how 
 soon an idle purpose to do an action sinks into a 
 mournful wish that it had once been done.” Were 
 such imprudent procrastinators to look, on the one 
 hand, to the thousands of families who are pre¬ 
 served in comparative comfort through the instru¬ 
 mentality of Life Assurance, and, on the other, to 
 the tens of thousands who are pining in all the hor¬ 
 rors of a poverty from which it might have saved 
 them,* surely they would no longer calculate on 
 
 mind—that he had not made a will, and that he had not assured 
 his life. The former was immediately proceeded with, but for the 
 latter there was no remedy. It was too late. 
 
 * How many melancholy instances of the wide spread evils which 
 Life Assurance would prevent are to be met with in the columns 
 of the London newspapers. Take the following from the Times 
 as a recent example:—“ To the Benevolent and Humane.—The 
 daughters of a deceased beneficed clergyman, who made known 
 their distressing case a month ago, which was occasioned by a sei- 
 sure for rent, have remained in an empty apartment ever since 
 
72 
 
 LIFE ASSURANCE. 
 
 length of days, but at once give up thinking on the 
 subject, and betake themselves to acting. In this, 
 as in other cases, how many, like the Macedonian 
 monarch, would require some friendly monitor at 
 their ear, constantly to whisper to them their mor¬ 
 tality. 
 
 But Life Assurance is not only an individual or 
 family advantage; it is a great public benefit, and 
 as such should be fostered and encouraged by every 
 government which has at heart the welfare of its 
 people. In doing good to families, it elevates the 
 condition of the community of which they are con¬ 
 stituent parts; and when we consider that the 
 inmates of our workhouses, and the dependents on 
 our various eleemosynary institutions, are fre¬ 
 quently widows and orphans, and think how many 
 of these might have been at least partly provided 
 for by means of Life Assurance; how many might 
 thus have been gladdened by the feelings of honest 
 independence, instead of dragging out a degraded 
 existence in the imprisonment of a poorhouse— 
 
 enduring great privation; and one of them being an invalid x has 
 added to the calamity. Their object in making this appeal is to 
 obtain a few contributions,” &c. 
 
LIFE ASSURANCE. 
 
 73 
 
 an existence whose evils are often aggravated by 
 the sickening remembrance of all from which they 
 have fallen; when we reflect not only on the direct 
 advantages which would result to the community, 
 were Life Assurance generally resorted to by those 
 to whom it is at all accessible, but also of the several 
 collateral advantages attending it, and which would 
 sooner or later begin to tell on the physical and 
 moral aspect of society—it will surely be admitted 
 that Life Assurance is a great national good. If, then, 
 the prevention of an evil is better than its cure, Life 
 Assurance is worthy the deepest consideration of 
 every individual who has at heart the welfare of 
 the community. 
 
 Let every man, then, hasten to place his family 
 under its protection, and secure for them its benefits; 
 not folding his arms in listless inactivity, while so 
 many families around him are daily going down to 
 poverty, or keeping aloof, because he has not the 
 means of securing a provision commensurate with 
 his wishes; let him remember that 
 
 He who does the best his circumstance allows, 
 Does well, acts nobly.” 
 
74 
 
 LIFE ASSURANCE. 
 
 Thus will he have the satisfaction of having per¬ 
 formed his part to his surviving relatives—and thus 
 will he reduce the amount of human suffering, and 
 add to the sum of human happiness. 
 
LIFE ASSURANCE 
 
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PROPRIETARY 
 
 80 
 
 LIFE ASSURANCE 
 
APPENDIX. 
 

 
 
 
 
ADVERTISEMENTS, 
 
 SCOTTISH AMICABLE LIFE ASSURANCE SOCIETY, 
 
 141 BUCHANAN STREET. 
 
 THIS SOCIETY ADAPTS ITSELF TO EVERY CLASS OF 
 INSURERS. 
 
 To the Party desiring additions for the Annual Payment he is willing 
 to devote to the objects of Life Assurance, the Society offers the 
 most favourable terms. Under this Class, a party of the age of 29 
 will, by the payment of £25 a-year, secure for his family, at his death, 
 whenever that may happen, 
 
 A PROVISION OF £1000, 
 
 which, if he lives to an advanced age, will have been increased, by 
 additions, to 
 
 A PROVISION OF £2000. 
 
 Should the same party require only a definite assurance, payable at 
 his death, without additions, he will, for £25 a-year, secure a Policy 
 of £1200. 
 
 Or, should he be desirous of having the sum 
 PAYABLE TO HIMSELF 
 
 in advanced life, he may, for about £24 a-year, secure L.1000 on his 
 attaining the age of 65; but, should he not reach that age, his Annual 
 Premiums will cease, and the L.1000 be paid to his Heirs. 
 
 To the Merchant engaged in prosperous business, and who looks to 
 provide handsomely for his family in a few years, this Society secures 
 them against the contingency of death before his expectations have 
 been realised; and for an Annual payment of L.62 :10s. a-year, for 
 
84 
 
 ADVERTISEMENTS. 
 
 the next seven years, will secure L.1000 on the life of a party of the 
 age of 30, should he die before the end of that period. 
 
 Or, should the same individual of 30 pay L.90 a-year for five years, 
 he will secure his family in L.1000, with the accruing additions thereon, 
 in no probability less than L.l 5 a-year. 
 
 And, in a similar manner, should a party of the age of 44 have rea¬ 
 lised a sum not required in his business, which he is desirous to invest 
 safely for his family, by a 
 
 DEPOSIT OF L.500 
 
 with this Society, he will secure to them at his death 
 
 AN ASSURANCE OF L.1000, WITH ADDITIONS, 
 
 as has been observed, in no probability less than L.l5 a-year. 
 
 It may be a question whether it might not, in such cases as this 
 and the preceding one, be better to withdraw such an investment from 
 his own control; but, should this not be done, and the party require, 
 in some few years, the Cash he has advanced, he will receive it from 
 the Office in Loan, without diminishing his Insurance. 
 
 Prospectuses and every information may be obtained from the 
 Agents of the Society, or at the Head Office. 
 
 N.B .—The above additions are calculated according to what has 
 been hitherto declared. At the approaching investigation (in Dec. 
 1846,) there is every chance that they will be more. 
 
 Ordinary Directors . 
 
 JOHN ALSTON, Esq. of Rosemount. 
 
 MARK SPROTT, Esq. of Garnkirk. 
 
 Professor RAMSAY, College. 
 
 WILLIAM STIRLING, Esq. Kenmure. 
 
 THOMAS CALLENDER, Esq. Merchant. 
 
 ELIAS GIBB, Esq. Merchant. 
 
 GEORGE ROSS WILSONE, Esq. of Benmore. 
 
 JOHN PASLEY, Esq. Merchant. 
 
 Medical Adviser —WILLIAM R. GIBB, Esq. M.D. 
 
 WILLIAM SPENS, Manager . 
 
ADVERTISEMENTS. 
 
 85 
 
 SCOTTISH PROVIDENT INSTITUTION, 
 
 FOR LIFE ASSURANCE, 
 
 No. 14 St. Andrew Square, Edinburgh. 
 
 GLASGOW—No. 67 ST. VINCENT STREET. 
 
 London— No. 12 Moorgate Street. 
 
 The EIGHTH ANNUAL MEETING of the CONTRIBUTORS was 
 held on 18th February, 1846, when the Report of the year’s business, 
 and of the results of the first investigation into the affairs, was submit¬ 
 ted. The following is an Abstract of the Report 
 
 “ The number of new policies issued has been 348. The sums as¬ 
 sured by these (exclusive of annuities) amount to £153,437, and the 
 annual premiums to £4090. 
 
 “ The number of deaths during the year has been sixteen. The 
 amount of the claims thereby emerging £5000. Both the number and 
 average are again greatly below the calculated rate. 
 
 “ The total number of policies opened, from the commencement 
 of the Society up to 31st December, 1845, was 2136. The amount of 
 capital sums assured was upwards of 962,000. The assurance sub¬ 
 sisting at the same date, after deducting all lapsed and surrendered 
 policies, amounted to £823,803. The income derivable from premi¬ 
 ums alone, was £22,216 ; and, including revenue from the accumu¬ 
 lated fund, £26,366. 
 
 “ The amount of the policies which have emerged by death has been 
 altogether £23,400. From detailed calculations which have been 
 made, it appears that the rate of mortality has been greatly short of 
 what is indicated by the tables on which the premiums are based. 
 
 “ The rate of interest maintained upon the investments has consi¬ 
 derably exceeded the rate calculated on, having been throughout very 
 nearly five per cent. On the present investments the average return 
 is £4 :16: 8d. per cent.” 
 
 The Report then stated, “ That the period of the first investigation 
 having arrived, the Directors had appointed a Committee of six of 
 their number, along with the Manager, to make that investigation; 
 and had received from them a Report, which showed the following 
 
 ABSTRACT OF RESULTS. 
 
 Amount of Funds, including value of Future Premiums, £351,927 
 
 Amount of Liabilities of every description, . . 321,442 
 
 Surplus of Funds, .... £30,485 
 
 “ The valuation of that part of the funds and engagements depend¬ 
 ing on the contingencies of life has been made, for each class, accord¬ 
 ing to that table of mortality upon which the Office premiums for the 
 particular class are founded. The table on which the premiums for 
 by far the largest class of assurances are based, is the one deduced 
 from the Government observations for males. That table, while 
 greatly more true than the Northampton table, is yet known to exhi- 
 
86 
 
 ADVERTISEMENTS. 
 
 bit a higher rate of mortality than is to be looked for in a Life Assu¬ 
 rance Society. In the estimate of the value of the future premiums, 
 an ample reserve has been made toward the future expenses of man¬ 
 agement; and, in adjusting the several valuations, your Committee 
 have exercised a cautious and prudent discretion. The preceding 
 view of the existing surplus is, therefore, rather understated. 
 
 (Signed) “ Wm. Fraser. 
 
 “ Robert Hunter. 
 
 “ Chas. Lawson. 
 
 “ D. S. Peddie. 
 
 “ Alex. Jamieson. 
 
 “ James Cowan. 
 
 “ James Watson. 
 
 “ This Report of the Committee has been unanimously approved 
 of and- adopted by the Directors; and they feel assured that the Con¬ 
 tributors will concur with them in thinking that it exhibits a highly 
 gratifying view of the Society’s affairs.” 
 
 The Directors beg to call the attention of the Public to the Prin¬ 
 ciples of this institution, in the conviction that they offer to Assurers 
 greater advantages than those of any other Office established or pro¬ 
 jected. It is the only office which combines the advantages of 
 Mutual Assurance with Moderate Premiums. 
 
 In many Offices (including even some of the older Mutual Offices) 
 Assurers are offered the choice of a moderate Scale of Premiums, 
 without any claim to share in the Profits, or of a right to participate 
 at an extravagant rate of Premium. 
 
 Assurers with the Scottish Provident Institution are the sole reci¬ 
 pients of the Profits, and at rates of Premium equally moderate with 
 those of the non-participating scale of any other Office. 
 
 The principle on which the Profits are divided is at once safe, 
 equitable, and favourable to good lives, viz. that the surplus should fye 
 reserved for those members whose Premiums , with accumulated interest , 
 amount to the sums in their policies , instead of being frittered away 
 among Policies of short duration, on which there is a loss and not a 
 profit to the common fund. 
 
 annual premium to assure <£100 at death. 
 
 Age 25. 
 
 Age 30. 
 
 Age 35. 
 
 Age 40. 
 
 Age 45. 
 
 Age 50. 
 
 £1 18 0 
 
 £2 1 6 
 
 £2 6 10 
 
 £2 14 9 
 
 £3 5 9 
 
 £4 17 
 
 The same Premium which, at age 30, is charged in the other Mutual 
 Offices for an Assurance of <£1000 will secure a Policy in the Scot¬ 
 tish Provident of £1230. 
 
 Copies of the Annual Report , Forms of Proposal, and every informa¬ 
 tion may be had on application at the Office , or to any of the Agents. 
 
 JAMES WATSON, Manager. 
 
 SECRETARIES TO THE GLASGOW BOARD. 
 
 DUNCAN & HUTCHISON, 67 St. Vincent Street 
 
ADVERTISEMENTS. 
 
 87 
 
 TEMPERANCE PROVIDENT INSTITUTION, 
 
 39 Moorgane Street. 
 
 ENROLLED UNDER ACT OF PARLIAMENT. 
 
 FOR MUTUAL LIFE ASSURANCE, ENDOWMENTS, 
 SUPERANNUATION ANNUITIES, FUNERAL MONEY, &c. 
 
 TRUSTEES. 
 
 WILLIAM JANS ON, Jun. Esq. | ROBERT WARNER, Esq. 
 EDWARD WEBB, Esq. 
 
 SECRETARY. 
 
 THEODORE COMPTON, Esq. 
 
 This is the only Life Assurance Society where persons abstaining 
 from intoxicating liquors can secure the benefits of Life Assurance 
 without paying for the losses occasioned by drinking habits. 
 
 The most eminent medical authorities, including the Queen’s phy¬ 
 sicians, have declared that total abstinence from fermented liquors 
 would promote the health of the community. A physician at the 
 late Exeter Hall meeting spoke as follows :— 
 
 “ Alcoholic drinks stimulate the system, and so make the powers 
 of life go faster than they otherwise would do; and upon this simple 
 principle they bring old age and death. The faster the clock goes 
 the sooner it runs down; and upon the same principle stimulation 
 shortens life. The effect of this stimulation may be easily calculated. 
 The pulse of a child, when born, beats 140 in a minute, and if a per¬ 
 son lives to fourscore, the pulse lessens to perhaps about 40 a 
 minute. Over stimulation will increase the number of pulsations, and 
 thus the system will be worn out sooner than would follow in the course 
 of nature. But there is another consideration: supposing there is a 
 latent disease in the constitution, this unnatural stimulus will find it 
 out, and work it out, and in that way destroy the system.” 
 
 In confirmation of this opinion, it is a remarkable fact that the 
 number of deaths in the Temperance Provident Institution, during 
 more than five years, has been less than half the number experienced 
 by other offices ! 
 
 Three of the most successful offices averaged 19 deaths per 1000. 
 The Temperance Office has only had 7 \ per 1000. The most fortu¬ 
 nate of those offices lost 11 lives out of 840: the Temperance Office 
 lost only 12 out of 1600. 
 
 During the last twelve months, only two deaths have oc¬ 
 curred, THOUGH THE NUMBER OF POLICIES ISSUED EXCEEDS TWO 
 
 Thousand ! 
 
 An early application for Membership is strongly recommended, as 
 the share of profits will depend upon the date of admission. 
 
 The whole Profits belong to the Assured. 
 
 AGENTS. 
 
 Glasgow • U m ‘KENNA; and 
 
 g ■ (W. J. PATERSON, 42 Argyll Street. 
 Edinburgh: W. A, GRAY, 20 Bristo Street. 
 
88 
 
 ADVERTISEMENTS. 
 
 THE CITY OF GLASGOW 
 
 LIFE ASSURANCE COMPANY, 
 
 FOR ASSURANCES ON LIVES AND SURVIVORSHIPS, 
 
 FOR THE SALE OF 
 
 PRESENT, DEFERRED, AND SURVIVORSHIP ANNUITIES, 
 AND ENDOWMENTS TO CHILDREN, 
 
 AND FOR THE 
 
 PURCHASE OF REVERSIONARY & CONTINGENT RIGHTS. 
 
 CONSTITUTED BY ACT OF PARLIAMENT. 
 
 Glasgow Board. 
 
 Robert Ferguson, Esq. Merchant. 
 Henry Dunlop, Esq. of Craigton. 
 William Balfour, Esq. Merchant. 
 John Tennant, Esq. St. Rollox. 
 Alexander Wingate, Esq. Merchant. 
 John Leadbetter, Esq. Merchant. 
 
 Daniel Walkinshaw, Esq. Manager. 
 Archibald Borthwick, Esq. Actuary. 
 
 Henry Brock, Esq. Manager of the 
 Clydesdale Bank. 
 
 James Muirhead, Esq. Jeweller. 
 
 John James Gibb, Esq. Merchant. 
 Mungo Campbell, Esq. Glasgow. 
 William Whyte, Esq. of Kilmardinny. 
 A. S. Dalglish, Esq. Merchant. 
 
 ]J. Macfarlane, M.D. Medical Referee . 
 
 I Alex. Morrison, Esq. Law Agent. 
 
 Robert Balfour, Esq. Agent & Secretary for Edinburgh. 
 
 Offices. 
 
 GLASGOW—40 ST. VINCENT PLACE. 
 EDINBURGH—19 ST. ANDREW SQUARE. 
 
 THE VERY GREAT SUCCESS of this Company, since its estab¬ 
 lishment, may be attributed, among other causes—1st, To the ac¬ 
 knowledged advantages afforded by its different plans of Assur¬ 
 ance; 2d, To the complete security afforded by the Subscribed 
 Capital of a large and influential Proprietary; 3d, To the Amount of 
 business secured from that Proprietary, independent of every 
 other source; 4th, To the adoption of Premiums calculated at 
 moderate and yet perfectly safe Rates; and, 5th, To the principle 
 of an annual division of the Company’s Profits. 
 
ADVERTISEMENTS. 
 
 89 
 
 Parties may Assure on the plan of PARTICIPATION IN 
 THE PROFITS of the Company, and secure every advantage to be 
 had in a Mutual Assurance Society, without the smallest risk or 
 
 RESPONSIBILITY. Or, 
 
 They have the option of assuring at the LOWEST SAFE 
 rate of premium, if they wish merely to secure a certain fixed sum 
 at the most favourable per-centage, whether in connection with 
 Loans, or otherwise. 
 
 Assurers are allowed to adopt ANY PLAN IN THE PAY¬ 
 MENT OF THE PREMIUM most convenient for themselves. 
 
 In the distribution of Profits, they have the great and well- 
 known advantage of EARLY CONNECTING THEMSELVES with 
 a Company established within the last few years, and which has al¬ 
 ready secured a very large and increasing business. 
 
 Every advantage will be given to Assurers in the negotiation 
 of Loans, by Redeemable Annuity or otherwise. 
 
 To Parties proceeding abroad, beyond the limits of Europe, 
 EVERY FACILITY IN THE OBTAINING OF LICENSE will be 
 afforded at Rates properly graduated to the risk. 
 
 No Admission Fee is charged at entry ; and there is no addi¬ 
 tional expense whatever to Assurers, except the Policy Stamp. 
 
 In all respects, the Company’s Business is conducted in such a 
 way AS TO AFFORD EVERY FACILITY AND ENCOURAGE¬ 
 MENT which can be offered for the extension of Life Assurance. 
 
 The first investigation of the Company’s affairs took place at last 
 yearly balance, on 20th January last, when, from the success which 
 has attended the Company’s transactions, the Directors were enabled 
 to declare a Bonus addition of one per cent, on the sum Assured, 
 under each Policy having right in the participation of the profits of 
 the Company, for every year said Policy has been in existence. 
 
90 
 
 ADVERTISEMENTS. 
 
 NORTH BRITISH INSURANCE COMPANY, 
 
 64 Prince's Street, Edinburgh; 8 Royal Exchange 
 Square, Glasgow; 4 New Bank Buildings, London; 
 37 College Green, Dublin. 
 
 Established 1809, and Incorporated by Royal Charter. 
 
 CAPITAL—ONE MILLION. 
 
 PRESIDENT. 
 
 His Grace the Duke of Sutherland. 
 
 VICE-PRESIDENTS. 
 
 Most Noble the Marquis of Abercorn. I Right Hon. the Earl of Camperdown. 
 Rt. Hon. Lord Visct. Melville, K.T. I Right Hon. the Earl of Stair. 
 
 GLASGOW BOARD. 
 EXTRAORDINARY DIRECTORS. 
 
 James M‘Call, Esq. of Daldowie. 
 
 A. Campbell, Esq of Blythswood. 
 James Monteath, Esq. of Stonebyres. 
 
 John George Hamilton, Esq. 
 Donald Smith, Esq. Banker. 
 
 A. Dennistoun, Esq. of Golfhill. 
 
 ORDINARY DIRECTORS. 
 
 T. D. Douglas, Esq. Chairman . 
 Andrew Ranken, Esq. 
 Archibald Smith, Esq. 
 
 John Campbell Douglas, Esq. 
 A. M‘Kenzie Kirkland, Esq. 
 
 Alexander M‘Grigor, Esq. 
 Hugh Brown, Esq. 
 
 Cohn Campbell, Jun. Esq. 
 Donald Cuthbertson, Esq. 
 
 Medical Officers —J. Burns, M.D. and A. D. Anderson, M.D. 
 Solicitors —Messrs. Douglas and Ranken. 
 
 Life Assurance. 
 
 The great success of this Corporation is to be attributed to the soundness 
 of its principles, the selection of its lives, and the advantages its system offers 
 to the public : it combines the principles of mutual assurance, with the secu¬ 
 rity of a subscribed capital of ONE MILLION Sterling, and the support of a 
 large and influential body of Proprietors, and ranks, in point of business, the 
 first Proprietary Office in Scotland. The present Accumulated Fund from 
 life premiums is upwards of Four Hundred and Forty-two Thousand Pounds , 
 and the annual income exceeding Ninety Thousand Pounds , and continues ra¬ 
 pidly to increase. 
 
 Fire Insurance. 
 
 Property Insured against Loss or Damage by Fire at the Lowest Rates of 
 Premiums corresponding to the risk. 
 
 Farm Stock and Crop insured in one sum, free of Duty, without the average 
 clause. Loss and Damage by Lightning made good. 
 
 Prospectuses, Tables of Rates, and every information, may be had on appli¬ 
 cation at the Offices here and in Edinburgh; or to any of the Agents. 
 
 ARCHIBALD HAMILTON, Manager for Glasgow. 
 
 ALEX. BRASH, Secretary for do. 
 
 Agents —D. & N. BANNATYNE, 46 Renfield Street. 
 
 JAMES RITCHIE, 129 Ingram Street. 
 
 HUGH MACKAY, 80 Union Street. 
 
 WILLIAM PATERSON, 85 Candlerigg Street. 
 
ADVERTISEMENTS. 
 
 91 
 
 NORTH OF SCOTLAND FIRE l LIFE ASSURANCE COMPANY, 
 
 3 King Street, Aberdeen. 
 
 20 St. Andrew Square, Edinburgh— 1 Moorgate Street, London. 
 
 Governor — Right Honourable Viscount Arbuthnott. 
 
 Aberdeen Board of Directors. 
 
 Dr. Cruikshank, of Marischal College, Chairman. 
 
 Thomas Blaikie, Esq. Lord Provost. I Henry Paterson, Esq. Banker. 
 William Adam, Esq. of Ranna. Peter Williamson, Esq. Druggist, 
 
 Alexander Gordon, Esq. Advocate. | David Wyllie, Esq. Banker. 
 
 Edinburgh Board of Directors . 
 
 George Graham Bell, Esq. Advocate, Chairman. 
 
 George Barron, Esq. W.S. 
 
 John Crease, Esq. Merchant. 
 James Donaldson, Esq. Advocate. 
 Walter Duthie, Esq. W.S. 
 
 Henry Scott, jun. Esq Hat Manu- 
 Wiinam U F?Skene, Esq. W.S. 
 
 This Company offers itself to the notice of intending Assurers on 
 peculiarly favourable grounds. The Premiums are upon the lowest 
 scale consistent with perfect security; and the subscribed capital of 
 the Company, combined with the undoubted standing and respecta¬ 
 bility of the Shareholders, afford all the requisite elements of a safe 
 and desirable investment. 
 
 Specimen of the Tables. 
 
 Yearly, Half-Yearly, and Quarterlk Payments 
 
 For the whole of Life , for an Assurance of .£100 on a Single Life. 
 
 > 
 
 Without Particip\tion. 
 
 With Participation. 
 
 09 
 
 CC 
 
 Annual 
 
 Half-yearly 
 
 Quarterly 
 
 Annual 
 
 Half-yearly 
 
 Quarterly 
 
 
 Premium. 
 
 Premium. 
 
 Premium. 
 
 Premium 
 
 Premium. 
 
 Premium. 
 
 
 £ s. d. 
 
 £ s. d. 
 
 £ s. d. 
 
 £ s. d. 
 
 £ s. d. 
 
 £ s. d. 
 
 25 
 
 1 18 0 
 
 0 19 7 
 
 0 10 0 
 
 2 1 5 
 
 1 1 5 
 
 0 10 10 
 
 30 
 
 2 1 11 
 
 1 1 8 
 
 0 11 0 
 
 2 5 8 
 
 1 3 7 
 
 0 11 11 
 
 35 
 
 2 7 2 
 
 1 4 5 
 
 0 12 5 
 
 2 11 5 
 
 1 6 7 
 
 0 13 4 
 
 40 
 
 2 14 6 
 
 1 8 4 
 
 0 14 3 
 
 2 19 5 
 
 1 10 8 
 
 0 15 6 
 
 45 
 
 3 4 7 
 
 1 13 9 
 
 0 17 0 
 
 3 10 5 
 
 1 16 8 
 
 0 18 5 
 
 50 
 
 3 19 11 
 
 2 1 10 
 
 1 1 2 
 
 4 7 1 
 
 2 5 5 
 
 1 2 10 
 
 At a Special General Meeting, held in Aberdeen, on 10th July, 1846, 
 the results of the First Investigation into the Company’s Affairs 
 —which are of a highly satisfactory character—were fully explained 
 to the Meeting, and the Bonus Additions declared. The following 
 Table exhibits the Additions made on Policies of .£1000:— 
 
 Date of Policy 
 prior to 
 
 Sum in 
 Policy. 
 
 Bonus. 
 
 Sum in Policy, 
 and Bonus 
 Additions. 
 
 Per Centage of 
 Bonus on Sum 
 Insured. 
 
 1837—April 30 
 
 £1000 
 
 £115 0 0 
 
 £1125 0 0 
 
 124 
 
 1838— ” ” 
 
 1000 
 
 112 10 0 
 
 1112 10 0 
 
 Hi 
 
 1839— ” ” 
 
 1000 
 
 100 0 0 
 
 1100 0 0 
 
 10 
 
 1840— ” ” 
 
 1000 
 
 87 10 0 
 
 1087 10 0 
 
 8f 
 
 1841— ” ” 
 
 1000 
 
 75 0 0 
 
 1075 0 0 
 
 74 
 
 1842— ” ” 
 
 1000 
 
 62 10 0 
 
 1062 10 0 
 
 6| 
 
 1843— ” ” 
 
 1000 
 
 50 0 0 
 
 1050 0 0 
 
 5 
 
 1844— ” ” 
 
 1000 
 
 37 10 0 
 
 1037 10 0 
 
 3f 
 
 1845— ” ” 
 
 1000 
 
 25 0 0 
 
 1025 0 0 
 
 
 1846— ” ” 
 
 1000 
 
 12 10 0 
 
 1012 10 0 
 
 
92 
 
 ADVERTISEMENTS. 
 
 The above Bonus vests immediately , and is payable with the Sum 
 Assured, whenever the claim emerges , without regard to the time the 
 Policy has been in force. If the Life Assured should survive 30th April, 
 1851, a farther Bonus will be declared. 
 
 Particular attention is also requested to the following comparative 
 statement, exhibiting the sums which the same Premiums would as¬ 
 sure with two other offices; one, in point of business, standing at the 
 head of the Mutual , and the other at the head of the Proprietary 
 Offices. 
 
 The amount of Bonus is also given upon the supposition that the 
 Policies had been in force for ten years. 
 
 Comparative Table, 
 
 Showing the Total Benefits which would arise under a Policy emerging 
 Ten Years after being opened with the following Offices, upon the 
 Same amount of Premiums. 
 
 
 NORTH OF SCOTLAND. 
 
 SCOT, widows’ fund. 
 
 STANDARD. 
 
 Age. 
 
 Sum. 
 
 Bonus. 
 
 Total. 
 
 Sum. 
 
 Bonus. 
 
 Total. 
 
 Sum. 
 
 Bonus. 
 
 Total. 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 20 
 
 3000 
 
 375 
 
 3375 
 
 2768 
 
 577 
 
 3345 
 
 2832 
 
 531 
 
 3363 
 
 25 
 
 3000 
 
 375 
 
 3375 
 
 2674 
 
 577 
 
 3231 
 
 2738 
 
 513 
 
 3251 
 
 30 
 
 3000 
 
 375 
 
 3375 
 
 2649 
 
 552 
 
 3209 
 
 2706 
 
 507 
 
 3213 
 
 35 
 
 3000 
 
 375 
 
 3375 
 
 2651 
 
 552 
 
 3203 
 
 2709 
 
 508 
 
 3217 
 
 40 
 
 3000 
 
 375 
 
 3375 
 
 2692 
 
 561 
 
 3253 
 
 2745 
 
 515 
 
 3260 
 
 45 
 
 3000 
 
 375 
 
 3375 
 
 2771 
 
 578 
 
 3349 
 
 2825 
 
 530 
 
 3355 
 
 Note.'— The Scottish Widows’ Fund charges 10s. per cent, for entry- 
 money, and in the above calculation this is represented by an 
 equivalent Assurance in the North of Scotland and Standard 
 Companies. 
 
 Assurances may also be effected for fixed sums, without Partici¬ 
 pation in Profits, on Single Lives, Joint Lives, and Survivor¬ 
 ships; and Annuities, Present or Deferred, are granted on favour¬ 
 able terms. 
 
 No Entry-Money. 
 
 Loans on Approved Security. 
 
 FIRE INSURANCES 
 
 Are undertaken at the usual Rates of other respectable Companies, 
 and Policies may be transferred from other Offices without extra 
 charge. 
 
 gjf’ Printed Forms of Proposal, and all other information , are to be had 
 Gratis, at the Head Office or Agencies. 
 
 Wm. CHALMERS, Manager. 
 
 H. AMBROSE SMITH, Accountant. 
 
 Agent for Glasgow: 
 
 WILLIAM WARDLAW, 62 Buchanan Street. 
 
ADVERTISEMENTS. 
 
 93 
 
 PROVIDENT LIFE OFFICE, 
 
 m miKEisnp s ip m a a a^anxDa. 
 
 ESTABLISHED 1806. 
 
 INVESTED CAPITAL, £1,290,900. 
 
 Annual Income, ,£140,000.— Bonuses declared, £529,000. 
 Claims Paid since the establishment of the Office, £1,520,000. 
 
 PRESIDENT—The Right Honourable EARL GREY. 
 
 DIRECTORS- 
 
 The EARL of MACCLESFIELD. 
 SIR JOHN OSBORN, Bart. 
 
 JOHN DEERING, Esq. 
 ALEXANDER HENDERSON, M.D. 
 
 FREDERICK SQUIRE, Esq. 
 Rev. JAMES SHERMAN. 
 ALFRED BEAUMONT. 
 RICHARD SHERWOOD, Esq. 
 
 JOHN A. BEAUMONT, Esq. Managing Director. 
 
 TABLE of PREMIUMS for Assuring L.100 on a Healthy Life. 
 
 Age. 
 
 Without 1 
 Bonus. 1 
 
 With 
 
 Bonus. 
 
 Age. 
 
 Without 1 
 Bonus. | 
 
 With 
 
 Bonus. 
 
 For the whole Life, at an 
 Annual Payment of 
 
 
 For the whole Life, at an 
 Annual Payment of 
 
 20 
 
 25 
 
 30 
 
 35 
 
 £1 14 10 
 
 1 18 6 
 
 2 2 9 
 
 2 8 0 
 
 £2 3 7 
 
 2 8 1 
 
 2 13 5 
 
 2 19 10 
 
 AO 
 
 45 
 
 50 
 
 55 
 
 £2 14 5 
 
 3 2 5 
 
 3 17 5 
 
 4 10 4 
 
 £3 7 11 
 
 3 17 11 
 
 4 10 8 
 
 5 6 4 
 
 BONUSES paid upon Policies which have become CLAIMS. 
 
 No. of 
 
 Policy. 
 
 Sum 
 
 Insured. 
 
 Sum Paid. 
 
 No. of 
 Policy. 
 
 Sum 
 
 Insured. 
 
 Sum Paid. 
 
 435 
 
 £3000 
 
 £4509 1 1 
 
 3307 
 
 £2000 
 
 £3411 1 3 
 
 492 
 
 1000 
 
 1604 7 10 
 
 3617 
 
 1000 
 
 1862 4 11 
 
 2128 
 
 700 
 
 1207 17 0 
 
 4024 
 
 1000 
 
 1622 9 7 
 
 3085 
 
 5000 
 
 7706 6 0 
 
 4888 
 
 1000 
 
 1654 13 6 
 
 COUNTY FIRE OFFICE, 50 REGENT ST. PICCABILLY. 
 
 TRUSTEES- 
 
 His Grace the DUKE of RUTLAND, K.G. i The Right Hon. LORD NORTHWICK. 
 
 The Most Noble the MARQUIS of NORTHAMP- ALEXANDER HENDERSON, Esq. M.D. 
 
 TON. GLYNNE EARLE WELBY, Esq. M.P. 
 
 DIRECTORS. 
 
 The Right Hon. LORD NORTHWICK. 
 Sir RICHARD D. KING, Bart. 
 
 Sir JOHN OSBORN, Bart. 
 
 Sir WILLIAM EARLE WELBY, Bart. 
 JOHN GILLYATT BOOTH, Esq. 
 
 ALEXANDER HENDERSON, Esq, M.D- 
 GEORGE PRYME, Esq. 
 
 Sir HENRY PYNN. 
 
 FREDERICK SQUIRE, Esq. 
 
 JOHN A. BEAUMONT, Esq. Managing Director. 
 
 It is now thirty-nine years since the County Fire Office was instituted, and it has been eminently 
 successful. In addition to the payment of all claims which have arisen, the Directors have been 
 further enabled to return to the parties insured Bonuses to the amount of L.142,000. 
 
 AGENT.—'Mr, Robert Goav, Jun, 49 Miller St. Glasgow. 
 
94 
 
 ADVERTISEMENTS. 
 
 WESTERN FIRE AND LIFE INSURANCE COMPANY OF SCOTLAND. 
 
 Head Office, 19 St. Vincent Place, Glasgow. 
 
 [P&Y1E® (Mia 
 
 The Most Noble the Marquis of DOUGLAS and CLYDESDALE. 
 Lieutenant-General the Right Hon. Earl CATHCART, K.C.B. 
 WALTER F. CAMPBELL, Esq. of Islay. 
 
 J. C. COLQUHOUN, Esq. Sheriff of Dumbartonshire. 
 
 Sir JOHN C. FAIRLIE, Baronet, of Robertland and Fairlie. 
 
 Sir W. M. NAPIER, Baronet, of Milliken and Napier. 
 
 JAMES OSWALD, Esq. of Auchincruive, M.P. 
 
 ALEXANDER OSWALD, Esq. M.P. 
 
 Sir H. J. SEYTON STEWART, Baronet, of Allanton and Tough. 
 
 © Q I <§ If ® K 
 
 JAMES GRAHAM, Esq. of Fereneze, Chairman. 
 
 ROBERT GALBRAITH, Esq. of Greenhead, Merchant. 
 
 WILLIAM GILMOUR, Esq. of Oatlands, Merchant. 
 
 THOMAS LEADBETTER, Esq. Merchant. 
 
 JAMES LUMSDEN, Jun. Esq. Merchant. 
 
 WILLIAM MALCOLM, Esq. of Glenmorag, Merchant. 
 
 ROBERT WILSON, Esq. Merchant. 
 
 JOHN WINGATE, Esq. Merchant. 
 
 Medical Adviser —Dr. ANDREW BUCHANAN, Professor of the Institutes 
 of Medicine, Glasgow University. 
 
 Bankers —The CLYDESDALE BANKING COMPANY. 
 
 if UK ii ©lEip^^ir^iEiRD'Tra 
 
 The Directors solicit attention to this Institution, as the only native one for 
 FIRE INSURANCE in the West of Scotland; and they would urge its claims 
 to a preference, on account of the very moderate Premiums charged, viz. 
 from Is. 6d. upwards, according to the nature of the risk. 
 
 NO EXPENSE attends transfers from other Offices , which may he effected at 
 any of the Quarterly Terms. 
 
 LOFI ©IIP&BYEOEKITr. 
 
 The determination of the Directors to effect Insurance on good lives only , 
 has enabled them to fix the Premiums on a scale most favourable for the In¬ 
 sured, as exemplified in the Prospectuses of the Company. These, and any 
 requisite information, will be supplied by the various Agents of the Company, 
 or by 
 
 JAS. SMITH, Manager. 
 
 Glasgow, September , 1846. 
 
 (EUDtHRflfsB©K®Inl GB©z£\lj^©a 
 
 JAMES PEDDIE, Esq. W.S. I JAMES PATERSON, Esq. Merchant. 
 
 JOHN MURDOCH, Esq. S.S.C. Leith. GEO. HE WAT, Esq. Wine Merchant. 
 BENJAMIN GREIG, Esq. Merchant. | JAMES F. WILKIE, Esq. S.S.C 
 
 Medical Referee —Dr. ALEXr. PEDDIE. 
 
 Agent— WILLIAM LOW, Esq. Accountant, 58 Great King Street. 
 
 Wm. Eadie & Co. Printers, 48 Buchanan Street, Glasgow. 
 

 
 
 
 .