The Sun.
London, England, 1838-05-05 00:00:00

DEFERREWANNUITIES;
NATIONAL LOAN FUND LIFE ASSUR
ANCE SOCIETY.
Capital, 500,0004
PATaOL—His Grace the DUKE of OMERSET, F.R. S.
DIRECTORS.
T. LAMIE MURRAY, Esq., Chairman.
Col. Sir Burgas Camae, I
K.C.S. George Lungley, Esq!M.u, Elliotson, M.D. F. R. S. Kenneth Mackenzie, Esq.
Farebrother'q"
Es q•, John Rawson Esq.
H. Gordon, Es
Joseph Thompson, Esq.
Robert Hollond Esq., M.P.
Ammon—Professor Wheatstone, F.R. S.
PHTsIeTA TT—J. Elliotson, M. D. ,F.R.S. ; 37 ,Conduit-street.
StraGeosr—.E. S. Sysnes, Esq., 38, Hill-street, Berkeley-square.
ACTUARY—W. S. B. Woolhouse, Esq., F. R. A. S., 26, Cornhill.
LANNeas.—Messrs. Wright and Co., 5, Henrietta-street, Co-
vent-garden.
STANDING CouNsED.—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-
fll
the burthen of poor-laws, none has hitherto been brought
.°7Ward or adopted that would either induce or afford facilities to
me able-bodied members of society, to be responsible for their own
r4PPoet.
In a state of employment and health every one may be
1-irned capable of self-supportj; competition has, no doubt, re-
educed the rewards of labour to the standard of existence, ren-
ering it the more necessary that the smallest surplus, over exi-
11aceniicitlies es, should be carefully husbanded, in order that, by the best
given to economy and the application of means to ends,
ltd g be rendered capable of supplying the deficiencies, caused by
of employment, sickness, the several casualties of life, and by
ldt
:age• Over the frequent fluctuations in the quantity of ern-
-I°)newt, the employed have ea controul ; and, as the cause is not
!Pendent on fixed laws, but most frequently on the contingencies
which__ affect the quantity of money, their duration or occurrence
°anti ot be submitted to calculation—at any rate the remedy is be-
yond their reach. The laws of sickness have been sufficiently as-
eocenrtatrbiineun •
dtiofor b fixin'
a provision apportioned to the value of a given
it isof but although such a provision is not to be overlooked,
trifling
employment, and
compared to the hardships resulting from
Want of
ment, sickand unprovided old age. Want of employ-
ness, and old age, may fairly be classed under one head,
statsolele of non-productiveness. To those, therefore, who
rate/ depend on their labour, which is seldom too highly remune-
when inust be a matter of importance, out of their earnings
-employed, to provide for every period of non-productiveness,
from whichever oft h
.e foregoing causes it may arise.
.nIII._The two institutions open to the productive classes, are Sa-
vi gs. Banks and Benefit Societies, whose nature and scope, when
the evil be found te offer but a very imperfect remedy against
not hsst being institutions wherein the limited means of this class arc
Sevin
made applicable to their several ends.
contingent Banks are of unquestionable utility, but they afford no
hoarded
future advantage, and, besides, the sum that can be
• ductive classseir
;commensurate with the wants of the middle pro-
•
,Benefit Societies propose to offer provision in sickness and old
,ge e+. but their construction will be foud imperfect, and their plan
the profitable application of the means of economy.
1 Because sickness itself 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
no protection.
Because, out of a given means, the sum laid aside for sickness
must diminish the provision for old age.
o 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.
le Because sickness, being a state of non-productiveness, must
necessarily be included in any protection against such an 00.
. currence.
, IV. Various observations have been made on the duration of
scness, amongst the industrious classes, from an early period of life
.17
.e
eT
fit its close. Those most in use are,—the sickness amongst the
Societies in Scotland, given by the Highland Society ;—the
sickness amongst the labourers in the East India Company's Sera ;--the sickness amongst persons employed in Cotton, Silk,
°ll Flax, and in the Potteries, by the Factory Commissioners ;
't-fand the sickness amongst the English Benefit Societies, from re-
culls made to the Societ for the Diffusion of Useful Knowledge. These results, thoughyvaried, show how inconsiderable is the
etialtwun.,t of sickness uring that period of life, between the ages of
- 65, when each individual is more immediately thrown on his
CRP resotirees ;—they are as follows :
Average Average yearly
Class of Persons. Period. amount of Sickness in the
Sickness, period.
ehland Societies' return ....r2O to 65 Months.
Days.
16 Dlalys.
f C
tlndia Company's labourers 20 to 65 9 0 6 1-15 toy Commissioners—.
otton 121 to 61 7 27
Wool Yorkshire 2l to 61 10 29 I
Ditto, West of England 2l to 61 8 13 }.
Flax, Yorkshire .21 to 61 9 1
Silk '2l to 61 11 4
”ociety for DiffUsion of Useful,
Knov,ledge
20 to 65 18 21 12
Thus, it appears that the highest expectation of sickness, amongst
ka.les, is twelve and a half days, and the lowest six days, in each ,
Year 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-
t've ted from productive employment throughout a period of forty-
years: while, it may be observed, his religious observation of
I,"!'s seventh day, in which he 6` shall d.o no work," has diminished I.
'is Productiveness, by its recurrence in the same period, six years ,
4t 156 ays.
y• From the foregoing facts it must be obvious that provision in I
irkuess, or a Health Assurance by means of a separate contribu-
sin", is unnecessary, more particularly as such separate contribu-
j'n must tend to waste the resources out of which the industrious ,
Osses have to provide for the future. It also in effect throws the
,o'll;tilen of the permanently sick on one class exclusively, instead of
bile e'etY at large; who are thus called on for an act of benevolence,
they are scarce able to do justice to the claims of their own
s. Besides this, no compensation is given out of the contri-
atlOn fora rovision in sickness and old age to the families of
ti,„ll6se who never reach the age of 65, though death should happen ,
tT.unediately preceding it, and, if an assumed hypothesis is correct, ,
bll4t.,sickness before death is not more than five weeks, and taking
IYlng-pay at 10s. per week, it will not unfrequently happen the ,
113' return a man may obtain as a long and steady contributor to a
~'uefit Society, will not exceed 505., a sum scarcely equal to one
ei WI, payment at a shilling per week, while by his death lie leaves
tfaanily entirely unprovided for.
i• It is to remedy these defects, inherent in the constitution of ,
. ocie ,
'flefit S • ties that the National Loan Fund Life. Assurance ,
pri,,,'letY proposes to submit a plan
_of Deferred Annuities on a new
t„„"clPie, which will not only afford a snore ample provision for old
r and protection against sickness and misfortune—but addi- •
In c, the means at all times, of putting his energies in motion, and
,the event of Premature death, a better protection to his family.
'he plan proposed will embody several essential objects : t
1. To secure an increased provision for old age out of a given
ficavint by applying it exclusively to the purchase of a L-
-err s
2. T Annuity.
°a,,l.euler the purchase of a protection in sickness unneces- t
ssvitt'clruaYsv enabling the purchaser of a Deferred Annuity to ,
or borrow two-thirds of his previous payments. (
3 By the use of two-thirds of all his payments when required, t
to limit misfortune and want of employment, and extend
the lower of productiveness by an increasing command, in
each Year, of capital, so that, while providing for old age,
each succesive contribution renders him more secure against t
resent ruisfe:tuno.
4• To afford, at the age at which the Deferred Annuity would
commence, without reference to his then state of health, the
•Pti.4l of receiving, instead of his Annuity, its value in
money, according to the value fixed on the contract, or a
0r larger sum payable at his death.
. In the event of death before the age at which he would
be entitled to his Deferred Annuity, to return two-thirds of
his payments to his family [or such fixed Life Assurance as
may be settled on the contract].
6. In 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
, Annuity.
this Nothwithstanding the obvious and manifold advantages of
is plan over every other hitherto proposed, for securing present
`tnd future competence to the industrious population, still more
Striking advantages will be exhibited by contrasting its prospective
riekvision for old age with that offered by Benefit Societies. This
ses from the non-abstraction of given for a bene-
in sickness, which protection,aby the operationse p
ofarate the Loan
41111 on the Deferred Annuity, is not only more ample, but other
bsisfortunes are provided against, which if calculated, and a sepa-
rate contribution made for each, whose duration equals that of
l'ekness, the purchase of them would entirely absorb the means of
Providing for old age, while such a system must tend to discourage
Productiveness, and afford no protection to a family in the event of
rernature death. The object this plan embraces is to open faci-
,:ties to the efforts of self-support, to stimulate the independence of
ue class above the forced benevolence of another, while it recom-
:nibs itself to the latter by diminishing the burthen of Poor-laws,
fo',,,leit
.has been at all times irksome, disturbing the harmony and
Tre,utmg the mutual distrusts of society.
he followine- is a comparison of the benefits to be derived from
-*,e contribution' of Is. per week paid into a Benefit Society, or to
Irelllse a Deferred Annuity from the National Loan Fund
uciety
-Age Annuity Cash.lPolicy Sickness.l Loan. Death.
bliationaltoanrundil s.
eferredAnnuit
Option 47 16 391 11 466 0% of the %of the %of theat
.of Benefits, payments payments praeyeeivnetct.
Benefit
•................
aitto
.. SOO etiegli
.......... 0 Nil Nil, allow. Nil. Nil.
anew in
NationalLoanFundi sickness,
°Rion of 21 1 1 269 11 346 15 %of the of the 2j oretni
tes
At Menefits, payments paymentsliteym
(received.
If 1 I

Averae Averae earl
Class of Persons. ' Period. amount of Sickneg yss in they
Sickness, period.
hi Il'*'".'".."-----"------- Months. Daysi
e...and Societies' return 2O to 65 16 4. Days.
11 t.st India Company's labourers 20 to 65 9 0 6 1-15
ractoy Commissioners— 1
Cotton 21 to 61 7 27 1
Wool, Yorkshire 2l to 61 10 29 I
Ditto, West of England 2l to 61 8 13 } 7%
Flax, Yorkshire .21 to 61 9 1
t, Silk '2l to 61 11 4 J
'kiety for Diffusion of Useful,
Knov.ledge ...,_ 2O to 65 18 21 1234

It is --
Angejlot alone to the industrious classes this plan of Deferred
for elVes will be found efficient, in securing an ample competency
derive age.; but also to that important class of the community who
al
leabour their income from a combination of capital and personffi
ieritl3:pr..,7,o,_
,this. class, the Savings' banks do not afford a su -
ioatitutio uiu-able investment ; and, indeed, the framework of such
slot be_nns as have been designed for the more humble classes, has
there ;.
,mado !o suit their wants or consult
.their interests, and
th., w ists no institution, at present, to which they can resoi t,
, comp'' ould at the same time foster their industry,—secure to them
_ietency ; Catua ties of life
al old age,—and protect them against the varied
4 The Tables of. Deferred Annuities have been ccnstructed with
Fort to exhibit the benefits that may be secured by the smallest
1,11 reameo,:rugality, and to suit the circumstances and convenience of
The j
th,, object of Tables No. I. is to show the option of benefits
• the- Payment of Is. per week, or 2/. 12s. per annum, will secure at
.4 e iod of attaining the age of 50, 55, 60, or 65.
fyiLti.e Tables No. 11. show the Annual Premiums required to se-
a-i'v the
option of given benefits at these ages,—the sum required
sutlelleh age to be paid down at once to purchase them,—and also the
iii,t at,,nY age to be paid es disparity, so as to enable the purchaser
fo (:n of paying the premium at his own age, to pay that set down
sarvi‘ne age of 20, and by this means enabling the oWoer of a little
tverng to hirt' it to the best account. Tice Society will, more,
4140, receive all tiliti sum by insta;;nents, and fwd.:third§ of the
44t paid may, at any time, be withdrawn ,".;" deposit of
the
ilel::'V.
~_-,