GOVERNMENT INSURANCE FOR THE WORKING CLASSES.

New Zealand Times, Volume XXIX, Issue 4259, 13 November 1874, Page 3

GOVERNMENT INSURANCE FOR THE WORKING CLASSES.

(From the Lyttelton Times.) Everybody has heard of life insurance, and a great many persons, belonging to what are called the “ working classes,” have availed themselves of its advantages. Hundreds of widows and orphans have reason to bless the day when their husbands and fathers effected insurances on their lives, and so made a provision for their families, without which they would have been left in almost complete destitution. Thousands of heads of families in this colony are, at this day, happy in the knowledge that, whether successful in their business or not, whether their lives he long or short, they have secured those who are near and dear to them from the possibility of want by the timely provision which they have made, through a policy of life insurance. But there are, perhaps, thousands more who, with every desire to follow so good an example, and derive similar benefits, have arrived at the conclusion that they really could not afford the amount which would be required to keep up the yearly, halfyearly, or even quarterly premiums, even if they were to take out a policy 'of insurance. Or it may be that they fear the continual drain upon their resources for household affairs would prevent their accumulating a sufficient sum to pay the premiums just at the particular times when they would become due ; and so they imagine they would lose both their insurance and the premiums which they might have already paid. What they could do they have done. They have joined a Friendly Society, by which they have secured for themselves certain benefits in case of sickness, and a sum of about twenty pounds for funeral expenses at their death. This is a step in the right direction, and the man who has taken it deserves all praise. He has done what he could. But twenty pounds ! • What is that to a widow and children, when the mainstay of the household, is .taken away ? How far , will twenty pounds go,, when the bread-winner is removed ? It will joist suffice to pay for the funeral expenses, including the cost of decent mourning for the bereaved, and this is till. It leaves the widoov in as great perplexity as ever, as to the means by which she may provide for herself and her little ones. The New Zealand Government has now provided a means through which, by the smallest sacrifice on the part of the husband, this anxiety may be, to a great extent, and, in numerous cases, entirely removed. The Government does not ovish in the slightest degree to discourage persons from becoming, members of, or continuing to belong to, Friendly Societies. So far is it, indeed, from any such intention, that a branch of the Government Life Insurance department has been expressly opened, for the special benefit, in the first instance, of members of such societies, and it is to call their attention to this fact, and the advantages to be derived therefrom, that these and former remarks have been made. This then is the object of the industrial branch of the New Zealand Government scheme—to provide an easy means of supplementing to members of Friendly Societies the benefits which their representatives will receive in the event of their death. It may be called, in a word, “ Life insurance made easy.” Let us see how it will work, and whether it really is as easy as we have represented it. Working men, as a rule, receive their wages weekly; and it is perhaps when their pockets are full that the greatest temptations are felt to indulge in some luxury, which, although it may not cost a great sum, is not to be bad for nothing, and yet it is precisely in consequence of these little indulgences that it seems to be impossible for them to keep up the quarterly premiums on a policy of life insurance. To meet this difficulty, therefore, the Government is now prepared to insure the lives of members of Friendly Societies on the payment of the smallest weekly premiums, which will become due, and be called for by an agent, every Monday. The premiums range from one penny to three shillings per week, and the sums assured from five pounds one shilling to two hundred pounds, according to the age of each person when the insurance is effected. A few examples will show more clearly the power of the pence in connection with this subject. A lad aged sixteen may secure at death, by the payment of one penny weekly, a sum of £lO 4s. A person aged twenty may secure, by the payment of sixpence per week, a sum of £56 14s. A man aged twenty-five may secure for one shilling per week, the handsome sum of £lO3 16s. A middle-aged person, of say 40, may assure at death no less than £199 135., by the payment of two shillings and ninepcnce per week. The above are samples, taken at random, from the tables of premiums published by the department, and we may add that the fullest information on this subject may be obtained on application to any of the agents for the industrial branch. It is clear, therefore, that under this system life insurance will be made easy to the working classes. It ought to be regarded as a special boon to members of Friendly Societies throughout the colony, and we may fairly anticipate that thousands will gladly avail themselves of its advantages. Where is the lad that cannot spare a penny a week ; where the young man, receiving weekly wages, who will find it difficult to invest regularly one sixpence in a certain and comfortable provision for those who may now, or at no very distant period, be dependent upon him for their support ? Where is the hard-working, honest mechanic, who will not consider a shilling a week a good investment, when it will secure for his wife and children something more than a cool hundred on his death, even though that should, happen on the day following the payment of his first shilling'! To members of Building Societies, which include a large proportion of working men, the advantages of industrial life insurance will be immense, for it will enable their representatives to realise to the fullest extent the benefits to be derived from their connection with such societies, but which, without its aid, would in many cases be entirely lost. As an illustration of this fact, let us suppose the case of a member of a Building Society, who has borrowed from its funds £IOO, to bo repaid by small monthly instalments, extending over a number of years. This sum has been expended in the erection or purchase of a comfortable house,- in which he resides with his family, rent free, but saddled with.’a mortgage to the society for the balance due upon the amount borrowed, with interest.' Let us further suppose that this prudent householder has taken out a policy in the Government Industrial Insurance Department for £155 145., on which he has to pay a premium of one shilling and sixpence per week, he being at the time of insurance in the twenty-fifth year of his age. An accident overtakes him, or the symptoms of sottio fell* disease begin to manifest ’themselves,'and/ in* the 5 course of a short perkfd he dies. ' His widow receives from the Government within a month of his decease the full amount for which ho was insured. Out of it she pays off the mortgage to the,society, and her homestead is free from its burden of debt. It belongs henceforth, without any let or hindrance, to her and her children. The balance of the insurance money will suffice to keep them from want for the time being, or perhaps to start a small business which will place them in comparatively easy and comfortable circumstances. What would have been the position of the same family if that life insurance policy had not been taken out? -Their source of:income having been removed, they would be unable to keep up their payments to the society, their homestead would be sold over their heads, under the powers of the mortgage deed, and they would find themselves houseless, homeless, and, in a short time penniless objects of charity to the world, or, at best, dependent upon tho_ bounty of their friends for the merest necessaries of life. To working men, this is a serious consideration, and they should not neglect their opportunities. When they think over the matter calmly and carefully, they will decide that such advantages as are now placed within their reach, should not bo lightly cast aside. The objection of some, that they have already to pay the subscriptions to their society, and can do no more, will not now avail them. The premium being payable on Mondays, they will not have the excuse that their money will be all spent before the payment is called for, and even if it bo at a trifling sacrifice of some useless luxury, it can and should be done. A glass

or two less of their favorite beverage, a little leas indulgence in the “noxious weed,” or it may be an occasional sacrifice of their inclination to attend the theatre or some other place of amusement, is all that will be required, and the consciousness that they have done their duty to themselves, and their wives and children, will more than compensate for the selfdenial they may find it necessary to exercise. It should be further considered that there are advantages attending the Government scheme which render it a very safe and profitable mode of investment. These we may particularise under five heads :—l. Absolute security against loss.—The system of -Government life insurance is under the direct authority of the General Assembly of the colony, and it is by virtue of the power conferred by that Legislature, that the industrial branch of the department has been established. Every policy holder has therefore the security of the whole colony that the contract will be faithfully and punctually performed. 2, Exemption from Taxation.— All policies, powers of attorney authorising the receipt of money, and receipt for moneys payable under the Empowering Act are exempted from stamp duty. 3. Protection from Creditors.^—Every policy of insurance, effected by the insured upon the life of himself under the industrial branch is, . when it has been in existence for two years, exempted from liability to the laws of bankruptcy or insolvency, and from seizure under process of execution. 4. Married women may effect policies on their own lives, and dispose of the money assured as if single, and all policies effected by married women under the industrial branch are, when they have existed for two years, freed from the "debts -and control of their husbands. 5. Policies are issued free of any charge, except the premiums. The above are a few of the advantages offered by the Government to members of Friendly Societies in connection with the subjeot of life, insurance. It remains to” be seen what proportion of those members -will embrace the opportunity, now brought within their reach, of 'providing a safeguard for their families against the terrors of poverty.