THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

Dunstan Times, Issue 753, 22 September 1876, Page 2

THE GOVERNMENT LIFE INSURANCE DEPARTMENT.

(From the Colonist, Nelson, July 15, 1876.) The Financial Statement recently made by the Premier will go'-far tb relieve the apprehensions of many of our followcitizens who have, with commendable prudence effected insurances on their lives in the New Zealand Government Office. A comparison of the premium rates charged by the department with those of private companies, show a difference of from Jo to 20 per cent, in favor of the Government. But it was, not unnaturally, urged against the department that bearing in mind this low rate of premiums, together with the fact that the institution was still in its infancy, and that the necessarily heavy expenses of its initiation and establishment would have ’tb be deducted from the gross income of the department during the first five years of its existence, it was very doubtful whether any profit whatever would be realised on its transactions during that period. All doubts, on this subject, however, should be now fairly dispelled. The gentlemen to whom the accounts have been submitted are, we believe, actuaries of high standing in the Insurance world, and the result of their examination is that they find a surplus or “ profit” of over L 12.000. We are aware that ‘it ‘is not intended, at present, to divide any portion of this profit amongst the insured, since the Government Insurance and Annuities Act, 1874, expressly provides that the first investigation, with a view to division (if profits, shall be made at June 30, 1880. But we cannot ’close our eyes to the fact that it augurs well for the amount of the bonuses to be received by policy-boh l era fin four years’ time, that such a result of the past operations of thq department should have been obtained.

The guarantee of the colony renders every policy-holder perfectly sure that at his death the payment of the insurance money to his surviving relatives is secure, and he derives a great satisfaction from the knowledge, that although life is uncertain, and may terriiinate at any moment, and from the most unexpected cause, to make a provision for those who may have to mourn his premature decease. To heads of families this subject should commend itself most strongly. None who have not made ample provision in this or some other direction, should neglect the present opportunity of doing what is to them a positive duty ; while those who are free from family responsibilities will find life insurance the safest, and not the least profitable, mode of investmentment for their surplus income.