180 Letter on Affairs in general. [FEB. 



as it now stands in life Assurance policies. The effect ot that clause 

 (without going here into a discussion of the question over again) being 

 to deprive every man who insures his life of all benefit from his policy, 

 in case he be killed in a duel. 



Since that letter appeared, T see that there has been a notice published in 

 the advertisement of the " County" Assurance Office, signifying that all 

 persons assured in that establishment, who dio by duelling, will receive 

 that is their representatives will receive the " value which their respective 

 Policies bore on the day prior to their decease." And, as this promise will 

 not be at all comprehended by ninety-nine hundredths of the persons 

 who read it, I will just take occasion to observe, that, however plausible 

 it may sound, it is not worth consideration. 



The object of a man who insures his life and the object for which he is 

 content to pay a high price is not to accumulate a certain sum of money, 

 but to protect himself against the RISK of an early death ; and, therefore, 

 although the whole amount of premium received, were paid back, and 

 with interest, where such an individual dies, the grand purpose for which 

 he became an insurer is still defeated. But the paying the " value of the 

 policy" contemplates no return at all approaching to this. The " value" 

 of a policy varies according to a variety of circumstances, which it would 

 be tedious here to enumerate : but it does well when it amounts to a return 

 of one fifth of what the insurer has paid in premiums. The " value" of a 

 policy, according to the calculation of an Assurance office is the value 

 of such an annuity, as is equal to the difference of the annual premium 

 taken from the insurer at the age at which his assurance was first effected, 

 and that which would he demanded at the time when such calculation of 

 value is to be made. This interpretation is about as clear as the original 

 statement ? but the fact is, that it is hardly possible to make the thing 

 intelligible by statement, and I will give an example, therefore, which will 

 come sufficiently near the mark. According to a table now before me, 

 (that of the ** Amicable" Society) the annual premium required from a 

 man 25 years of age for an insurance for the whole of life, is 2. 5s. 6d. 

 per cent. The premium demanded for a man 30 years of age under the 

 same circumstances, would be 2. 10s. 6d. Now the man who insured 

 at 25, and broke his neck out of a window or was squeezed to death in 

 going to see (he Duke of York " lie in state" at 30, would receive from 

 the assurance office 100., having paid in premiums (including the 

 compound interest of his money,) in round numbers, say 15. Rut, if his 

 policy were to be " valued" at that same period as it would be in case he 

 wished to sell it, or was " killed in a duel" the value put upon it by the 

 office would be that of an' annuity of 6s. a year being the difference 

 between the premium (2. 5s. 6d.) at which lie was entitled to go on 

 maintaining his insurance, having commenced it at 25 years of age, and the 

 2. JOs. 6d. which would be required of him, now (at3u) if he were now 

 only beginning to insure: and the " value" of this annuity that is the 

 " value*' of his 100 policy would be certainly not so much as 3. 

 or one-fifth of the 15. which he had actually paid. Offices are entitled 

 to covenant to pay just what they please : but it is a pity that people should 

 not understand what it really is that they do covenant to pay. 



Still the grand, and, in fact, the only real object of Assurance, is the 

 entire security from RISK ; and if there be any casualty to which the 

 insurer remains exposed, the whole institution (to him) becomes worth 

 nothing. And the more extensive description of insurance undertaken by 

 these very Assurance companies to wit, the insurance from tire affords a 



