ASS 



ASS 



afTuraiTces are given in the books juil referrt^ to. — There 

 are further ajj'tirances on furvivoHliips ; by which is meant an 

 obligation for the value received, to pay a given fnni or an- 

 nuity, provided a given life (Tiall furvive any other given life 

 or lives. The metliod of finding thefe values is given under 

 the aiticle Survivorship. 



All thefe did'ercnt kinds of ajfuranc.-t are hf the gieatcft 

 ufe ; and the offices for making them are a particular 

 advantage to the public. The principal of thele offices 

 in Er.o-land are, the Amicable Society, incorporated for 

 a perpetual aliiii-ance ; the Society for Eq'.iitable Afl'iir- 

 ances on Lives and Snrvivorfliips ; the Royal Exchanpre 

 AfTurance ; the Wtftminfter and the Pelican Life-Of- 

 fices. The Amicable Society reqiires an annual pay- 

 ment of 5I. from eveiy member payable quarterly during 

 life. Tile whole annua', income hence ariling is equally di- 

 vided among the repitfentatives of fnch members as die 

 «very year ; and this renders the dividends among the claim- 

 ants in different years more or lefs according to the number 

 of members who have happened to die in thofe years. But 

 this fnciety enga'..;es that the dividends fiiall not be lefs than 

 150I. to each claimant, though they may be nlor^. — None 

 are admitted whofe ages are greater than 45, or lej's than I 2; 

 nor is there any diir;.rence of contribution allowed on account 

 of difference of age. This fociety has fubfilled ever lince 

 1706, and its credit and ufefulnefs are well-ei'iablinied. — Its 

 plan, however, is liable to feveral objeftions. — Firll, it is 

 evident that regulating the dividends among the reprefcnla- 

 tivei by the number of members wlio die every year, is not 

 equitable; becaufe it makes the benefit which is to accrue 

 from the iiiTurance, to depend, not on the value of the con- 

 tribution, but on a contingency ; that is, on the number of 

 members who have happened to die in the year. Secondly, 

 its requiring the fame payment* from all perfons under 45, 

 is alfo not equitable, for the payment of a perfon admitted 

 at 12 ought not to be more than /.hi'/ the payment of a per- 

 fon admitted at 45. Thirdly, by limiting the fun-.s affuied 

 ©n one and the fame life to 45c 1. it is but ill adapted to make 

 ■a competent provilion for the families of its members ; nor 

 can it be of any fervice to pi-rfcns whofe age exceeds 45 

 years ; a period of life, which it has been found from expe- 

 rience that many, if not mod perfons, have exceeded before 

 they have begun to provide tor their families by alTuring 

 their lives. It is likewife by i-.o means fitted to the circum- 

 ftances of perfons who want to make aflurances on their 

 lives for only one year, or for a fliort term of years. Thus, 

 the true value of the affurance of 150!. for five years on 

 the life of a perfon whofe age is 39, may be found by the 

 firil rule to be nearly three guineas ^Vr ai:n. fuppoling inter- 

 eft at i/tv cent, and the pr.)babihties of the duration of hu- 

 man life as they are given in the Nor:l.\-:wpt' n Table of Ob- 

 fervations. But fuch an affurance could not be made in 

 this fociety without an annual pavment of 5 1. 



Neither is the plan of this fociety at all adapted to the 

 circumilancts of perfons who want to make ajfurances on 

 particular furvivorfhips. For example, a perfcn poffcffedof 

 an eftate or falary, which mull be loll with his life, has a 

 ptrfon dependent upon him, tor whom he dcfires to fecure 

 a fum of money payable at his death. But he defires this 

 only as a ftcurity againil the danger oi his dying Jirjh In 

 thefe circumilances he enters into this fociety ; and by an 

 annual payment of 5I. entitles his ?;o/n;'«;v at his death 10150!. 

 In a few years, perhaps, his nominee liappeiis to die, and the 

 object of his<7^nj«cchaving thus ceafed, hedetermincs to give 

 up theadvaiitagea;ifing from his former payments andto with- 

 draw from the fociety. The right method in this cafe 

 would have been to have taken from fuch a perfon the true 

 value of the fum aflured " on the fuppofition of nou-pay- 



mcnt, provided he fhcrjld fur\-ive." Had this been done, 

 he would have paid for the ajfurance (fuppofmg intercft at 

 3 per cent, his age 30, the age of his nominee alfo 30, and the 

 values of lives as given by Dr. Price from the Norlhampton 

 Table) 3I. 6 s. 8d. in annual payments, to begin immediate- 

 ly and to be continued dunng the joint duration of his own 

 life and the life of his nominee. 



None of thefe objections, however, are applicable to the 

 other ofHces jull mentioned. In all of them affurances may 

 be made for any term and at any age between eight and 

 fixty-feven years, cither at fingle or annual premiums, pro- 

 portioned to the age of the perfon afTured, and to the rifli 

 or hazard attending the aflurance. The bufinefs tranfa^ed 

 in thefe offices is very extenfive, and fo far as relates to the 

 preminms they require, is founded on ilnct caleuiation, 

 Thefe premiums, which are now indifcriminately adopted by 

 all of them, were originally computed in the year 1 781 for the 

 ufe i;f the Equitable Societv-, — an inflitution io entirely 

 guided by computation in all its praftice, that in afcertain- 

 ing its profits at fixed periods, and dillributing them among 

 its members, it has never failed to proceed on the fame fure 

 principles, and by this means to render itfelf one of the 

 greateft public benefits to this country. In conftquence, of 

 its immenfe capital, and tiie veiy wide extent of its bufinefs, 

 it certainly far exceeds any other office of the fame kind ; 

 and therefore by giving an account of its rife and progrcfs, a 

 proper idea will be obtained of the nature of life-affurances, as 

 well as of the important benefits which tire derived fromthcin. 



This fociety was eltablifhed in the year 1762, in confe- 

 quence of propofals which had been made, and lectures re- 

 commending fuch a dcfign, which had been read by Mr. 

 Thomas Simpfon ; and the premiums then adopted for its 

 practice were computed by Mr. James Dodfon, the author 

 of the Mathematical Repofitory. It affures any fums or 

 reverfionary annuities on any life or lives, for any number 

 of years, as well as for the whole continuance of the lives, 

 and in any manner that may be beft adapted to the views of 

 the perfons aflured ; that is, either by making the affured 

 fums payable certainly at the failure of any given lives, or 

 on condition of fnrvlvor/hip ; and alfo, either by taking the 

 price of the affurance in one preftntpayment, or in anntud pay- 

 ments during any fingle or joint lives, or any terms lefs than 

 llic whole poffible duration of the lives. Anv perfons, for 

 inllance, who depend on incomes which mull be loll when 

 they die, or who are only tenants for life in ellates, may, by 

 affuring an equivalent on their own hves, guard their famihcs 

 or reprefentatrves againfl the lofs whicfi would accrue by 

 their death. Hence, clergymen, counfellors, perfons holding 

 any places of profit, traders, and others who have families 

 whofe fublillence depends on the continuance of their lives, 

 may be enabled to make provilion for their families after 

 their dectafe. All perfons likewife who enjoy annuities for 

 the lives of others, may here fecure themfelves againft the 

 lofs they would fuflain, fhould they furvive the perfons on 

 whofe hves the annuities depend, by making ajfurances which 

 would entitle them to any fums payable on condition their 

 furvivorfhip fliould take place. Any perfon entitled to an 

 eflate, annuity, legacy, or office after another perfon pro- 

 vided he furvives, may here fecure an equivalent for his 

 family at his deceafe, provided he does not furvive. Huf- 

 bands may in this fociety fecure annuities for their wives, 

 provided they fhould leave them widows. Parents, by affur- 

 ring the lives of tlieir children, when infants, till they attain 

 a given age, may fecure for them, fhould they live to that 

 age, f'.:ch fums as may be neceffaiy to put them out to ap- 

 prcnticefliips, or to make capitals or fortunes for them, with 

 ■which to fet out in bufinefs, or to marry. Any perfons, 

 apprehenfive of being left without fupport in old age, when 



incapable 





