The Evening Star MONDAY, APRIL 18, 1870.

Evening Star, Volume VIII, Issue 2167, 18 April 1870, Page 2

The Evening Star MONDAY, APRIL 18, 1870.

It is one of the characteristics of modern civilisation that men look forward to the time when, in the natural course of events, or, haply, at an earlier period, through accident or disease, they may die, or be unable to battle successfully with the world. It is therefore a man’s duty to guard against the consequences of contingencies, or of gradual decay, and to make such provision for those dependent upon him that when he is dead they may not sink in the social scale, or when he is old he may not become a pauper. Could the affairs of life be reduced to a certainty, and the continuance of life itself be safely calculated upon, the exact sum might be withdrawn from present earnings that, prudently invested, would secure given results. But every one knows no individual can say in the morning what he will positively do in the course of the day. The most regular employment is not free from risk, while the ever-changing circum stances of most men’s occupations lead them, in the pursuit of business, to actions which, however sate as a rule, expose them to a variety of dangers. Left to his own resources, therefore, no one can say that man’s most strenuous efforts will place his family above want in case of death, nor that he will be so succestful in course of years as to provide against povei’ty in old age. But what man solus cannot certainly secure, men associated can accomplish, It is singular that, amidst all the diversity of employment and the apparent irregularity of events, the average duration of human life—nay even the very number of crimes and the nature • of them that will be committed by certain communities within a given period, —can be almost accurately predicted. With this information for a guide, it is plain that there is not much difficulty in estimating that a specified number of persons, upon payment of an annual sum, could, witli the utmost cei’tainty, engage that at death or on arrival at a given age, a stated sum or a specified annuity should be paid. This is the foundation of all life insurance, the object of which is to secure, by the smallest possible payment, the result agreed upon. The regularity with which social events recur is shown by the success that has attended insurance companies, viewed only as trading speculations, and tens of thousands have had reason to bless the day when, by a skilful practical use of statistics, such happy results were arrived at. A week ago we stated that certain calulations had been placed in our hands by a gentleman who is a competent actuary, and who has compared the Government tables with those of some other insurance companies. There are several tables of mortality which differ slightly from each other. The first on record appears to have been constructed in 1692 from the bills of mortality at Breslau. Various other European tables were afterwards published, but that in use by the insurance offices at Home for a long period of time was the “ Northampton Table,” formed by Dr. Price from the burial register at Northampton between 1741 and 1780. After experience proved that this table showed the probabilities of life too low at the younger and middle ages, and although for a long time it was the only one used by insurance offices, it has been superseded by the Carlisle Table, which is generally esteemed to be the most correct representative of healthy life in England. The experience of the Equitable Society from 1760 to 1827 confirms the Carlisle Table, especially as to the duration of middle-age life. The Government appears to have adopted this table in the case of insurance, the premiums being calculated to allow 3 per cent, interest with additions to cover expenses varying from 1.6 to 10 per cent. The advantage of the Government scheme compared with the Liverpool and London and the Globe Companies is slightly in its favor, although there is some inconsistency in what is technically termed the loading—that is the additional per centage to cover expences. For the earlier ages the addition is trifling, in fact merely nominal. Thus from the ages of 16 to 25 the Government only adds an average of 6d, or 1.6 per cent., to the mean fair premium payable to secure LIOO at death; during the next ten years it is increased to Is fid or 3.8 per cent. ; from 36 to 45 it is 2s 9d, or 5.2 per cent,; and from 46 to 55 it is 5s 3d, or 7 per cent. It is usual with all offices to make additions for profit and the cost of management, but in every case that has come under our notice, it is customary to adopt a nearly

uniform per ceiitage on pure premiums for profit anti expenses. The Government plan appears an inconsistency, for however advantageous it may be to induce early insurance, the difference is not wide enough to act as an inducement to it. It will be seen by comparing the tables published by the Government that the premiums are slightly lower than the Companies tables, but the chief advantage gained is that all who insure will have Government security for their investments, and run no risk whatever of losing the benefit derivable from regular payment of their premiums when their need arrives.