The Sun.
London, England, 1837-12-20 00:00:00

ASSURANCE SOCIETY.

(From the Maidstone Gazette.)
A most respectable meeting took place on Thursday last, at
the Bull Inn, Maidstone, to receive an exposition of the prin-
ciples and objects of this excellent institution, from T. Lamie
Murray Esq., the Chairman of the Society,—with a view to
enable the middle and working classes of this town to profit
by the establishment of a branch in Maidstone. There were
present, amongst other gentlemen, Dr. Sibbald, W. Knox
Child, Esq., Captain Castles, Sibbald, Esq., &c. &c.
Dr. SIIMALU having been unanimously voted into the Chair,
T. L. MURRAY, Esq., Chairman of the Board of Directors,
then proceeded to explain to the meeting the objects of this
Society. lie observed that there was no subject so important
or so intimately connected with the social relations of life, or
one of which the principles required to be so widely dissemi-
nated amongst the people at large, as that of life assurance.
When a man assures his life, his object is to benefit some por-
tion or the whole of his family ; and the ordinary means of
doing so is by an annual saving, measured by the contingency
of life at the age at which be enters. Life assurance had, not-
withstanding, extended its advantages but a short way into
society at large; and these who had availed themselves of it,
and enjoyed its benefits, eight be said to belong entirely to
the upper classes. The object of this Society was to admit a
wider extension of its advantages to every class of persons, so
that it might be no longer confined to the rich. Although
the number of assurance societies now existing was about 45,
yet, notwithstanding the great activity in their management,
they contained not more than 80,000 persons as life assurers,
whose families were entitled to the benefit of their prudence.
This disparity led him (Mr. Murray) to inquire into the
reason why the benefits of life assurance were so limited.
When a man entered into a contract for a life assurance he
engaged to pay annually a certain sum. or in other words an
annuity, in order to sscure a certain sum payable at his de-
cease. If you ask a man of 30 years of age, where expecta-
tion of life is 28 years, not in the possession of a certain in-
come, to grant an annuity during his life, he would be
somewhat startled. No man would undertake to do so unless
he had some certain income not to be diminished by ad-
verse circumstances. At this point we find—while it:is admit-
ted on all hands that there are great advantages arising from
life assurance to those who can afford it—we come, as regards
society at large, to a " dead lock ;" and thus, upon the
present system, life assurance may be said not to be capable
of further extension beyond the income class. Why should
not the middle and lower classes also enjoy the benefits of this
system ? He took it fur granted that the great advantages of
life assurances were admitted. Now, if this extension were to
take place in the middle class, it must be by some plan differ-
ent from those already established, because men in the middle
class were subject to misfortunes which did not occur to those
of the income class. The plan of this institution offered a se-
curity against these misfortunes in life, as well as security to
his family in the event of his death. The great casualty to be
guarded against affecting the working classes, and which was
not subject to any calculation, was want of employment. Ano-
ther casualty equally common to them was old age, and which
was capable of being reduced to calculations ; and it was the
object of this Society to bring these calculations to bear so as
to mitigate the evils of the one, and provide for the other. If
they could reduce by observation the want of employment
to an average quantity, there would be no difficulty in as-
certaining the rates of premium to be paid for an assurance
against it; but the nearest approach that could be made
to such a provision was the use of the loan fund, whereby
a man could avail himself during temporary misfortunes
of the savings of his prudence during the previous
period of prosperity. Viewing society on a large scale,
and the constant vicissitudes of this nature to which the work-
ing classes were exposed, he (Mr. M.) had observed that the
want of employment had never extended over a period of time
that would exhaust the savings of former prudence. In this
Society a man would not only enjoy the means of protecting
himself against the vicissitudes of life, but also against super-
annuation, and in addition would compensate his offspring for
his loss by death. This Society partook in this respect of the
nature of a savings' bank and life assurance Society—the one !
to supply his temporary wants as a provision against casualties,
the other for for a nobler object to found the independence of
his family. There was no class of society to whom this system
was more advantageous than to the farmer. A farmer who
assured his life for 1,0001. could at one period of the year,
when he wanted to stock his farm, borrow two-thirds of the
amount of his payments ; at another period of the year he
could repay the loan, without losing in the mean time, in case
case of his death, the sum for which he had assured his life,
as the loan would only in such event be deducted from the
sum assured. The same advantages would be derived from
this Society by the shopkeeper, when lie wanted to supply his
shop. As a mode of accumulation, independent of its other
advantages, it was a superior one, as a man at twenty who as-
sured for 5001., living to his longest expectation, actually paid
only 290/. Benefit Societies were originally clubs, merely to
afford provision against sickness; they afterwards branched
out into superannuation allowances, and subsequen.ly into the
granting annuities to persons of the ages of 65 or 70 years,
and some have included funeral expenses. This was the scope
of these institutions; but, in his opinion, the new principles
adopted in this Society rendered it no longer necessary to ap-
propriate any portion of the saving towards a provision for
sickness, so that the whole amount of the saving now paid in
benefit societies for these insurances might be made to increase
the amount of the superannuation. Sickness but amounted to
a casualty, and that casualty less fearful than the other cocain.
gencies to which members of friendly societies were subject;
though there was great contrariety of opinion as to the ave-
rage amount of sickness during a man's life, yet the differ once
was comparatively trifling. The Highland Society had cal-
culated it, between the ages of 20 and 70, as equal to one
year and ten months. Now according to the calculations of
benefit societies, out of Vol. per week nearly one half was
appropriated as a Provision against sickness, which had of
course, the effect of diminishing the amount of the sum to be
appropriated to superannuation. He had calculated what
superannuation lid. per week paid by a man aged 20 would
secure him when he reached 65 ; and he found that the Society

would guarantee the sum of 301. per annum for the remainder
of his life—a sum adequately sufficient for all the purposes and
and ease and comfort of a working man ; whereas, out of the

same payment of 74d. per week into a friendly' society, he
could not be assured much more than half that amount as a
superannuation. The defalcation arose from admitting sick-
ness into the calculation of the latter, whereas by the plan of
this Society, through the loan fund, he was protected not only
against sickness, but against ever other casualty, by the faci-
lity with which he could withdraw an adequate portion of
his savings, and at the same time be secured in his insurance.
The Society w ould also give him the opti,,n of receiving
a sum of money instead of an annuity at sixty-five, equal in
value to the annuity, or by combining other tables, this
sum (say 2501.) would be made payabl as a compensation
to his family for his loss, provided he did not reach the age
at which he would be entitled to receive an annuity. The
tables upon which the calculations of this Society were bated
were the Carlisle tables ; tested by the experience of the
" Equitable" Society, one of the most respectable assu-
rance companies of the day. After some remarks on the ef-
forts of Dr. Halley, Dr. Heysham, Mr. Milne, and Dr.
Price, in bringing these tables of mortality to such perfec-
tion that their results may be relied or with comparative cer.
tainty ; he proceeded to show the superior accuracy of the Car-
lisle over the Northampton tables, as ascertained by the expe-
rience of the " kquitable Society, by reading the following
comparison
No. of

-------. _
Esti:natcd deaths. Actual deaths
Carlisle. Northampton. " Equitable."
370 618 309
448 886 43
567 965 569
678 1,086 652
754 1,260 900

Persons. Between
6,460 10 and 20
6,090 20 and 30
5,642 30 and 40
5,075 40 and 50
4,397 50 and 60

By the Northampton Tables two deaths or claim s would re-
quire tube provided for instead of one, twin other words, those
Societies who us©d the Northampton Tables up to the age of

50, charged just double the risk, while those who depended on
the Carlisle Tables alone, at high ages, might find themselves
mistaken. It was a great fallacy to suppose the public were
not more interested in paying the correct value for life assur
ance than in insuring at a low rate of premium—if it could be
proved that such premiums did not cover the risk as the con-
sequence of any error in such calculations to the assurers
could not be repaired. The assured are bound to look mo-
derately on the side of prudence. The Tables of the Society
had been calculated from data above alluded to by an eminent
mathematician, Mr. Woolhouge, whose first object had been
to ascertain the true risk at each respective age, and it would
be found in reference to them that besides combining the ut-
most security, they were also more moderato than nine-tenths
of the other offices.

After some further observations. Mr. Murray stated that he
should be most desirous of answering any question that any
person present might wish to put to him, respecting any
branch of the subjeet upon which he might not have entered.
It would, indeed, occupy several hours if he were to enter into
all the advantages of the plan—but he believed them to be so
obvious that he would mush prefer any question being put to
him on any apparent difficulty that might arise in the mind of
any one present.
The CHAIRMAN observed that Mr. Murray had said nothing
about the advantages that were likely to accrue to person
who took shares in the Society.
Mr. MURhAY replied that the Company had already sold all
the shares they wished to sell, with the exception of some
which had been reserved for the purpose of forming branches.
They would on no account sell shares to any person who would
be likely to take them into the market. The principles upon
which life insurance societies were now established were as
well understood and as certain as those upon which they would
build a bridge. These principles had been established by emi-
nent medical men, and were certain in their operation. If they
only realized a profit of 5,0001. that would pay 5 per cent. upon
the amount raised. Other offices were deriving profits of
80,000/. a year; and if they succeeded in introducing the
system of life insurances into new and wider channels, there
was no reason why they might not anticipate proportionate ad-
vantages. His object was not now to sell shares, which in fact
they were desirous not to sell to a greater extent than was ne-
cessary for extending branches; but his business was to ex-
plain the advantages of insuring in the office. Oaly 21. ss. had
been deposited upon each 101. share, and no chance existed of
any call,—and consequently the fewer shares they sold the
better it would be for the present holders. After replying to
some further questions, Mr. Murray concluded.
Mr. G. BENTLIF said that after the lucid and satisfactory
exposition they had heard, it was not necessary for him to
make any remark in support of a resolution which he was
about to move. Every one, he believed, must be convinced
that the principles upon which this Society were founded were
sound and equitable. He had great pleasure, therefore, in
moving " That the Meeting having heard the exposition of
the plan of the National Loan Fund Life Assurance
Sosiety, made by T. L. Murray, Esq., the Chairman of the
Society, highly approve of its objects, which they consider
eminently calculated ta confer great benefits on the middle and
working classes in particular, and on the community at large ;
and that a branch of the above Society be forthwith formed at
Maidstone."

Mr. J. La=ze briefly seconded the motion, which was car-
ried unanimously.
Mr. DALEY then read a letter which he had received from a
most respectable member of tho working class applying for six
shares, which application he had been induced to mako from
reading the prospectus.—( Hear, hear.)
The CHAIRMAN then took ten shares to begin with, and
shares were also secured by other persons present.
Thanks having been unanimously voted to Dr. Sibbald, for
his kindness and urbat.ity in presiding, the meeting adjourned.