Mb. Spens on the Formatkm of a Friendly 8ocUty, 179 



According to the Highland Society's Report, three-tenths of sick- 

 ness are estimated as permanent, and I conceive that one-third may be 

 taken as the amount with every probability of being within the mark. 

 It will be observed, however, that in the proposed rates an addition 

 to this is made, and in the regulations of the society, other securities 

 are proposed. 



Supposing, then, the permanent sickness to be one-third, of course 

 the annual payments required for £2 a week or £104 per annum, up 

 to 70, would be just one-third of the sums in the preceding table. 

 These are subjoined with the annual contributions for a similar 

 deferred annuity according to the same tables, to commence at 70, 

 and the sum of the rates for the two provisions ; and along side are 

 placed rates charged by two insurance offices for a deferred annuity 

 of £100, commencing at 70, and the same rates according to the Car- 

 lisle 3 per cent, table. Next are placed the rates I would consider 

 adequate for £100 a year during permanent sickness to 70, and the 

 like annuity from that age, payable in whatever state of health, 

 assuming 4 per cent, interest and no expense ; and lastly are placed 

 the rates I would propose for the intended society. 



These rates I would consider ample ; at the same time I do not think 

 that the Society should commence until there were at least fifty sub- 

 scribers, and that it should at first limit itself to allowances of £100 

 a-year, extending the risks beyond that amount when fifty members 

 were entered for such extended risk. A great security is obviously 

 attained, by combining the provision for deferred annuity with that for 

 sickness, and, as an additional one, I would suggest that no allowance 

 should be made to a member until he had been enrolled five years. 

 Of course there would also be medical examination of the candidate, 

 and admission should be by ballot, after recommendation by directors ; 

 but it may be noticed, that parties might, in reference to the pro- 

 visions of the Society, be admitted, who would not be eligible for 

 admission into an ordinary life insurance office. I would suggest that 

 the allowances of the Society should be according to the rates below, 

 for £100, £150, £200, £250, and £300 a-year. I may add, that I 

 think there ought to be periodical investigations, when a diminution of 

 the allowances may be made in the event of any possible shortcoming: 

 and in the more probable event of a surplus, I would propose it should 

 be applied to hastening the commencement of the deferred annuity. 



