MATHEMATICS OF LIFE INSURANCE 

 TABLE II 



39 



The dots represent the other years, as given in the complete mortality 

 table for the several ages from 35 on, the figures for which may be deter- 

 mined in the same manner. 



With this amount on hand today, on the assumption that the same 

 will earn 3^ per cent, interest, we shall have funds sufficient for the 

 payment of every loss that can possibly occur in any year until the last 

 3 members die. This amount divided by 81,822, the number originally 

 insured in our company, gives $370.55. In other words, if each member 

 of our company will pay in cash the sum of $370.55, we shall have at 

 date of organization a total of $30,319,142.10, or sufficient to pay every 

 existing policy in full as the several deaths occur. 



This $370.55 is termed the "net single premium," and is the net 

 amount, without provision for expenses, which a man at age 35 should 

 pay for a full-paid pohcy of $1,000. 



§ 4. The Net Annual Premiums 



The net single premium having been deposited, no further payments 

 would ever be required; but most men would find it inconvenient to 

 pay for their Hfe insurance in a single sum. By means, however, of an 

 equally simple mathematical process we may apportion that net single 

 premium into an equivalent twenty payments to be made annually. 



I shall not take your time this evening in going through the details 



