6 .52 
LIFE-ASSURANCE. 
that hacl been thus imprbvidently fquandered; when he 
finds, in' his.old age, the fecurity upon .which he refted, 
undermined and tottering to its fall! He .may be then 
arrived at years beyond.the period of affurance, or he may 
be fu'ojeA to infirmities that .would make him ineligible ; 
at any rate, his increafed number of years would enhance 
the premium be had to pay for a new affurance. It is of 
the utmqft importance, therefore, that a perfon commenc¬ 
ing an affurance on his life, fliould be thoroughly fatisfied 
as to the fund, the conftitution, and practice, of the com¬ 
pany from which he takes his policy. In this relpeft, a 
life T office differs materially from a fire-affurance. When 
a man affures his houfe againft the accident of fire, he has 
to reckon on the foivency of the eftablifhment for one 
year only, becaufe, at the end of that period, he may re¬ 
new it in the fame office, if he ftill lias confidence, or trans¬ 
fer it to another, without any increafe of premium. The 
nature of the thing to be infured is not more liable to the 
accident in the fecond year, or in the twentieth year, than 
in the firft. But, with refpeft to life, every year increales 
the rifk, and, confequently, augments the premium. 
The Rock Life-Affurance Company is formed to grant 
affuranees on life, for the whole term, or any limited 
period, and to receive depofits of fums of money, to 
return, at a given time, or upon any fpecies of con¬ 
tingency of life, either a lpecific fum, or an equivalent 
annuity. 
The profits derived from the accumulation of premiums 
and their interefl, elHmated on an accurate inveftigation 
of the demands to be made on them, are divided into 
three parts; two of thefe parts are affigned to the body 
of perfons aifured on the whole of life, and one of theie 
parts is added to the capital Hock, of the company, thereby 
to augment the fecurity to the public. The part affigned 
to the body of perfons affured on the whole of life, is di¬ 
vided among them, in proportion to the number of pre¬ 
miums paid and the fum affured by each ; and it is to be 
received by the heirs and alligns of the party, which 
makes the affurance, at the time when the principal fum 
affured is paid, 
i. The firft mode of affurance which prefents itfelf to 
our view is, on the whole term of life. This is highly im¬ 
portant to perfons polfelfing entails, by enabling them ad- 
vantageoufiy to provide for younger children ; and it is 
applicable to the higheft .and molt extenfive hereditary 
eftates, where a parent defires to prelerve unbroken the 
whole domain. By a finall annual economy, he may thus 
provide for all the younger branches of his family, with¬ 
out intrenching on the parent ftock. It is alio applica¬ 
ble to perfons holding public fituations, benefices, pen- 
fions, &c. and to members of the learned profdfions, 
merchants, and bankers, as well as all others whole in¬ 
come is only for life, * We lhall juft ftate the following 
cafe, as being worthy of peculiar attention from perfons in 
trade who are about to enter the marriage-ftate. Suppofe 
the bride to have a fortune of 3000I. which her parents 
or guardians will) to have fettled upon her : in this cafe, 
if invefted in the funds, the hufband can derive no bene¬ 
fit from the fortune, except its annual intereft. Now, if 
the gentleman be not more than 26 years of age, the pre¬ 
mium of affurance on his life for 3000I. will be under 
75I. per annum. Of courfe, if 1500I. be fecured by in- 
veftvnent in the funds, or otherwife, fo that it produce 
5 per cent, the intereft thereon will be fufficient to pay 
the premium of affurance on the 3000I. and thus the re¬ 
maining' 1500I. may fafely be left at the hufband’s difpo- 
fal. On the event of his death, the family receive the 
3000I. affured, with whatever increafe may have arifen 
upon it, and have alfo the 1500I. which was invefted as a 
lecUrity for the premiums. Thus the 3000I. fortune, 
which in the common mode would have produced only 
150!. per annum, not only yields the principal fum of 
4500I. and upwards, on the hufband’s death, but, in all 
probability, the 1500I. left at his difpofal in bufinefs may 
of itlelf have given an income equal to what would Qther- 
wife have been the produce of the whole fortune, fettled 
in the common way; as ten per cent, is looked upon to 
be a common return for capital employed in trade. 
2. On joint lives and furvivorfiips. This mode applies to 
numerous claffes in fociety, and efpecialiy to thole in the 
marriage-ftate. The income of. a hufband may be loft’if 
his wife die before him ; and very generally, if the hufband 
die before the w ife, file Hands in need of provifion. In ei¬ 
ther cafe this may be prevented by affurance. Thus a 
fum may be fecured to either on the death of the other, 
by a payment of an annual premium during their joint 
lives. This mode of affurance alfo enables perfons who, 
though entitled to large property in reverfion, have none 
in poffefiion, to enjoy a prelent income, which otherwife 
could not be obtained. This is done by alluring the life 
of the heir againft that of the poffeffor of the property in 
queftion, to any amount which the friends of the heir arc 
willing to advance him for prefent fubfiftence. If the 
heir fliould die before he comes into poffefiion, the affur¬ 
ance will indemnify his creditors; if, on the other hand, 
he obtain the eliate, lie can eafily repay the amount him- 
felf. As contingencies alfo occur, in which three or more 
lives are concerned, as in the cafe of leafes upon lives, af- 
furances may be made upon each contingency. 
3. Annuities .—The principle of granting annuities for 
life has been fufficiently explained : but here we have to 
obferve, that the plan which the government have recently 
eftablilhed for the converfion of three per cents, into life- 
annuities, applies to ftockholders only, and does not ex¬ 
tend to perfons under thirty-five years of age. Families 
or individuals, of all ages, defirous of invefling the whole 
or part of their money created by induftry, or defe'ending 
to them by bequeft or inheritance, may have annuities 
granted to them at the Rock-office, for the increafe of 
their incomes, on the terms which mathematical accuracy- 
lias proved to be corredl. And it may be proper to re¬ 
mark, that perfons purchafing an annuity from govern¬ 
ment, who may afterwards be defirous of leaving a part 
of their capital behind them, may at this office make 
an affurance for fuch part thereof. Thus a father or mo¬ 
ther, left with a young family, may be defirous of fink¬ 
ing their capital to enlarge their income, by which they 
may educate their children. But out of this increafed 
income, they may devote a part to a life-affurance, that 
would fecure a fum to be paid at their death. This may 
merit the attention of thofe who have already converted 
their three per cents, into life-annuities. 
4. Remote life-annuities .—A plan is formed at this office, 
adapted to a numerous and important clafs of perfons, 
who have not hitherto enjoyed the means of providing 
by infurance for the decline of life. In the lower claffes 
of induftry, there are numerous friendly focieties, in 
which, by an annual, quarterly, or monthly, payment, 
it is propofed to return to the members a ftipulated fum, 
on certain contingencies of illnefs, See. and thefe initia¬ 
tions, if well regulated, would be highly beneficial to the 
community. The legi?ature has fandtioned them ; and 
perhaps it would have been well if they had alfo put them 
under fome farther regulation ; for in general their calcu¬ 
lations are vague and delufive. In many inltances their 
funds have been either totally fquandered, or been found 
infufficient. They have alfo too frequently been con¬ 
verted into engines of abufe, by paying weekly fums to 
artifans out.of work, and have thereby encouraged com¬ 
binations among workmen, not lefs injurious to the niif- 
guided members themleives than to the public weal. It 
is certain, however, that an inftitution which fliould hav« 
for its objedt to provide a comfortable income fo the pru¬ 
dent and induftrious in the decline of their faculties, would 
at once be an incentive, and a confolation to the mind. 
It would be free from all the objedlions that exift againft 
all the clubs, boxes, and friendly focieties, to which wc 
Irove alluded; and it wouW particularly deferve the coun¬ 
tenance of all magiftrates and clergymen, church-wardens, 
land-ownei's, and others, interelted in watching over th* 
morals 
