The Sun.
London, England, 1838-04-28 00:00:00

DEFERRED ANNUITIES.
tAATIONAL LOAN FUND LIFE ASSUR-
- ANCE SOCIETY.
• Capital, 500,0001.
TRON.—His Grace the DUKE of SOMERSET, F.R. S.
DIRECTORS.
T. LAMIE MURRAY, Esq., Chairman.
C°,4,1. Sir Barges Comae, K.C.S. George Lungley, Esq.
C.
Elliotson, M.D. F. R. S. Kenneth Mackenzie, Esq.
Farebrother, w
Esq., Ald. John Rawson Esq.
Gordon,
Robert Holl Esq.
Es Joseph Thompson, Esq.
ond, q., M.P.
Aunrrox.—Professor Wheatstone, F.R. S.
Elliotsen, M.D., F.R. S., 37 .Conduit-street.
6"•Gac'w—E. S. Syrees, Esq., 38, Hill-street, Berkeley-square.
ASTUARY—W, S. B. Woolhouse, Esq., F.R. A. S.
al.anzEas.—Messrs. Wright and Co., 5, Henrietta-street, Co-
vent-garden.
-NbiNc COUNSEL.--W. Milbourne James, Esq., Stone-build-
ings, Lincoln's Inn.
SOLICITORS.—Wessrs. Webber and Bland, 43, Bedford-row.
SECRETARY.—F. Ferguson Camroux, Esq.
DEFERRED ANNUITIES.
Amongst the several remedies proposed to mitigate or dimi-
h.:_l. the burthen of 'poor-laws, none has hitherto been brought
the able-bodied members of society, to be responsible for their own
support.
mil' In a state of employment and health every one may be
doomed eapable of self-support ; competition has, no doubt, re-
deq the rewards of labour to the standard of existence, ren-
ering it the more Necessary that the smallost surplus, over exi-
gencies, should be carefully husbanded, in order that, by the best
faeilit'
't ,e-
given to economy and the application of means to ends,
nay be rendered capable of supplying the deficiencies, caused by
martt 51 employment, sickness, the several casualties of life, and by
ptio-,age• Over the frequent fluctuations in the quantity of em-
-de'inlent, the -employed have no controul ; and, as the cause is not
whir '1 on fixed laws, but most frequently on the contingencies
au .ect the quantity of money, their duration or occurrence
eannot be submitted to calculation—at any rate the remedy is be-
their their reach. The laws of sickness have been sufficiently as-
certained, for fixing a provision apportioned to the value of a given
contribution
; but although such a provision is not to be overlooked,
it "a l
nt s of trifling importance compared to the hardships resulting from
of employment, and unprovided old age. Want of employ-
;_e,, sickness, and old age, may fairly be classed under one head,
—da state of non-productiveness. To those, therefore, who
rate itepend on their labour, which is seldom too highly remune-
when' em
bust b, a matter of importance, out of their earnings
..ployed, to provide for everperiod of non-productiveness,
hem whichever of the foregoing causes it may arise.
111. The two institutions open to the productive classes, are Sa-
vings Banks and Benefit Societies whose nature and scope, when
examined, will be found to offer but a very imperfect remedy against
not best being institutions wherein the tedmeans of this class are
nays made applicable to their several ends.
coating Banks are of unquestionable utility, but they afford no
nt future advantage, and, besides, the sum that can be
hoarded is incommensurat with the wants of the middle pro-
ductive classes.
Benefit Societies propose to offer provision in sickness and old
e, but their construction will be found imperfect, and their plan
(oe least profitable a pre t•on of the means of econom.
1. Because sicknepss litaself is not a calamity of equal probable
duration to the fluctuations in the quantity of employment
and other casualties, and misfortune, against which they offer
2.protection.
Bee use, out of a given means, the sum laid aside for sickness.
3. Must diminish the provision for old age.
Because many must contribute to the sick fund who never
become chargeable upon it, and the value of such contribu-
tions is lost to themselves and families.
4. Because sickness, being a state of non-productiveness, must
necessarily be included in any protection against such an oc-
, currenee.
si .V. Various observations have been made on the duration of
c'nese, amongst the industrious classes, from an early period of life
fltil its close. Those most in use are,—the sickness amongst the
sickness Societies in Scotland, given by the Highland Society ;—the
eoless amongst the labourers in the East India Company's Ser-
;—the sickness amongst persons employed in Cotton, Silk,
wool, Flax, and in the Potteries, by the Factory Commissioners ;
and the sickness amongst the English Benefit Societies, from re-
`urns made to the Society for the Diffusion of• Useful Knowledge.
These results, though varied, show how inconsiderable is the
C!Mount of sickness during that period of life, between the ages of
tiend 05, when each individual is more immediately thrown on his
own resources;—they are as follows :

Average Average yearly
Class of Persons. Period. amount of Sickness in the
Sickness, period.
Months. Days. Days.
Highland Societies' return 20 to 65 16 4 11
East India Company's labourers 20 to 65 9 0 6 1-15
acto r y Commissioners—
Cotton 21 to 61 7 27
Wool, Yorkshire 21 to 61 10 29 I
Ditto, West of England 121 to 61 8 13 } 714
Flax, Yorkshire X2I to 61 9 1
Silk 2l to 61 • 11 4 j
Society far Diffusion of Useful
Knowledge 2J to 65 18 21 12y4

Thus, it appears that the highest expectation of sickness, amongst
males, is twelve and a half days, and the lowest six days, in each
?ear from the age of twenty to sixty-five; its mean duration, in-
elusive of accidents of all kinds, would be nine and a quarter days,
during which, from these causes, an individual may expect to be ab-
stracted from productive employment throughout a period of forty-
S/e years: while, it may be observed, his religious observation of
the seventh day, in which he " shall do no work," has diminished
his productiveness, by its recurrence in the same period, six years
arid 156 days.
V. From the foregoing facts it must be obvious that provision in
I!ekuus, or a Health Assurance by means of a separate contribu-
tion, is unnecessary, more particularly as such separate contribu-
",°ll must tend to waste the resources out of which the industrious
casses have to provide for the future. It also in effect throws the
,I
"'Men of the permanently sick on one class exclusively, instead of
society at large; who are thus called on for an act of benevolence,
71fle they are scarce able to do justice to the claims of their own
ibes• Besides this, no compensation is given out of the contri-
bution.. fora provision in sickness and old age to the families of
lose who never reach the age of 65, though death should. happen
mediately preceding it ; and if an assumed hypothesis is correct,.
readt sickness before death is not, more than five weeks, and taking
onCll3:ing-PaY at 10s. per week, it will not unfrequently happen the
keLfittunt a man may obtain as a long and steady contributort tonae
hyews Society, will not exceed 50s„ a sum scarcely equalk o o
is fa at a shilling per week, while by his death eleaves
unprovided for.
ttl It is to remedy these defects, inherent in the constitution of
Sovieto" Societies, that the National Loan Fund Life Assurance
Prinei Proposes to sninnit a plan of Deferred Annuities on a new
age _ c, which will not only afford a more ample provision for old
tiot;:tnha Protection against sickness and misfortune--but in addi-
ht the e h"leans, at all times, of putting his energies in motion, and
Theevient of premature death, a better protection to his family.
1. TPal, o Proposed will embody several essential objects
secure an increased prevision for old age out of a given
avi', by applying it exclusively to the purchase of a De-
fertea Annuity.
render the purchase of a protection in sickness unneces-
'aY' by enabling the purchaser of a Deferred Annuity to
3.
,)vitlidraw or borrow two-thirds of his previous payments.
16,Y use of two-thirds of all his payments, when required,
limit misfortune and want of employment, and extend
theeach successive
of productivenesspl by an increasing command, in
so that, while providing for old age,
,ac" succesive contribution renders him more secure against
4. Tprese.....
n nt misfortune.
afford, at the age at which the Deferred Annuity would
eonunence, without reference to his then state of health, the
~,,,°l'ti"rl of receiving, instead of his Annuity, its value in
oney, according to the value fixed on the contract, or a
B.
sum payable at his death.
the event of death before the age at which he would
phis
entitled to his Deferred Annuity, to return two-thirds of
is payments to his family [or such fixed Life Assurance as
6.
,may be settled on the contracq•
to all such cases where the power of productiveness fails,
either from disease or accident, to enable the assured on
equal terms to convert. his Deferred Annuity into a present
yr:Annuity.
this Nothwithstanding the obvious and manifold advantages of
and fP4ao over every other hitherto proposed, for'securing present
atriki ure competence to the industrious population, still more
previ_.g advantages will be exhibited by contrasting its prospective..
strise:To for old age with that offered by Benefit Societies. This
Et 1 ir:orn the non-abstraction of a given sum for a separate
Fun sickness, Sickness, which protection, by the operation of the Loan
Inisfe,.°44 the Deferred Annuity, is not only more ample, but other
latt'utles are provided against, which if calculated,. and a sepa-
aieknes "Mribution made for each, whose duration equals that of
Pro the purchase of them would entirely absorb the means of
productiveness,
for old age while such a system must tend to discourage
br--letiveness and ;fford no protection to a family in the event of
Ifjmature death.' The object this plan embraces is top open faci-f
tr,e" the effrts of self-upport, to stimulate the indeen
Aida
itself
above the forced benevol!nce of anothnu whileitdrecom
self to the latter by diminishing the hur hh
toite„n!'lLs been at all times irksome, disturbing t e harmony and
olio the mutual distrusts of society.
the e following is a comparison of the benefits to be derived from
tureeheasmeribaution of Is. per- week paid into a Benefit Society, or to
' Deferred Annuity from the National Loan Fund
`sty

------......,___4ge 2°' Annuity Cash.lPolicylSicknest.
______Loan. Death.
tiTatio,, .
LekiVQ...oanrund X. s. £. S. X. S.
option edAnnuities
at .°f lien,fits 47 16 391 11 466, 0' of the %of the %of the
payments payments praeycrentevned.
IS
ed.:tett ***** S.°e...Ce. ''''''''
.............. 126 0 Nil. Nil. allow.- Nil. Nil.
Nat. ances in
I°4ll4anrund sickness.
°Ptio
, tnn
ef Benefits, 2' 11 269 11346 15 ,iyomfethtes %of the %of the
.. payments paymente
It ;._-_-------:-.-*-1_ I I received.

It 1 • -
AttaZot alone to the industrious classes this plan of Deferrede
for old 1"
will be found efficient, in securing an ample competency
derive age ; but also to that important class of the community %N. 1 _
labourtbeir income from a combination of capital and personal
cieriti To this class, the Savings' Banks do not afford asu -
institZtProfitable investment ; and, indeed, the framework of such
tot beel' as hove been designed for the more humble classes, has
there n. ',lade uit their wants or consult their interests, and
th_, exists no institution at present, wich they can resort,
__es petency
73rIllvould at the same time foster their industry,—secure to them
va uslties of life.
age,— and p
to old protect them against the varied
The T
a ables of Deferred Annuities have been constructed with
effort`otu exhibit the benefits that may be secured by the smallest
allell
stefsruzalit Y, and to suit the circumstances and convenience of
Th: ,•
it,_ object
X' Payment of lc
of Tables No. I, is to show the option of benefits
per week, or 2/. los. per annum, will secure at
`°e,,,period of attaining the age of 50, 55, 60, or 65.
'lle Tables N ii
tare the ' °. • show tho Anual Premiums required to se-
at e,_ °Ption of given benefits at these ages,—the sum required
Illitri au age t° be paid down at once to purchase them,—and also the
instealany
r 7 age to be paid as disparity, so as to enable the purchaser
for the paying the prentium at his own age, to pay that set down
savino. +age °I 20, and by this means enabling the owner of a little
over '"° torn it to the best account. The Society will, more-
mount
all this sum by instalments, and two-thirds of the
paid
may, at any time, be withdrawn on deposit of the policy,