The Sun.
London, England, 1838-05-03 00:00:00

Capital, 500,0001.
P'l4oNr.—His Grace the DUKE of OMERSET, F.R. S.
atnEcions.
L AMIE MURRAY, Esq., Chairman.
•:o_l Sir
.Rurges Camac, K.C.S. I George Lungley, Esq.
hn Elliotson, M.D. F. R. S. I Kenneth Mackenzie, Esq.
C. Farebrother, Es Ald
, Eaq. 1"
* John Rawson Esq.
R. Gordon
Joseph Thompson, Esq.
Robert Hollond, EA., M.P.
AUDITOR.—Professor Wheatstone, F. R. S.
PHYSICIAN--J. Elliotson, M.D., F.R. S., 37 ,Conduit-street.
u ttmioN—E. S. Synes, Esq., 38, Hill-street, Berkeley-square.
AcTuARY—W; S. B. Woolhouse, Esq., F.R. A. S.
BANliEM:.—Alessrs. Wright and Co., 5, Henrietta-street, Co-
vent-garden.
grawntwo COUNSEL.—W. Milbourne James, Esq., Stone-build-
ings, Lincoln's Inn.
Sottcyroas.—Wessrs. Webber and Bland, 43, Bedford-row.
SECRETARY.—F. Ferguson Camroux, Esq.
DEFERRED ANNUITIES.
Amongst the several remedies proposed to mitigate or dimi-
nish the burthen of poor-laws, none has hitherto been brought
forward or ado; ted that would either induce or afford facilities to
the able-bodied members of society, to be responsible for their own
snPPort.
If• In a state of employment and hea'th every one may be
a?united capable of self-support; competition has, no doubt, re-
u.aced the rewards of labour lo the standard of existence, ren-
dering it the more necessary.that the smallest surplus, over exi-
gencies, should be carefully husbanded, in order that, by the best
facilities given to economy and the application of means to ends,
it may be rendered capable of supplying the deficiencies, caused by
. want of employment, sickness, the several casualties of life, and by
old age.
Over the frequent fluctuations in the quantity of em-
-I°Yelent, the employed have no controul ; and, as the cause is not
dependent on fixed laws, but most frequently on the contingencies
which affeet the quantity of money, their duration or occurrence
cannot be sublnitted to calculation—at any rate the remedy is be-
yond their reach. The laws of sickness have been sufficiently as-
certained,' for fixing a provision apportioned to the value of a given
.ettribation ; but although such a provision is not to be overlooked,
it mis of trifling importance compared to the hardships resulting from
want of employment, and unprovided old age'. Want of einploy-
Inent, sickness, and old age, may fairly be classed under one head,
viz. :—a state of non-productiveness. To those, therefore, who
solV depend on their labour, which is seldom too highly rernune-
rwatl it must be a matter of importance, out of their earnings
_romen euiployed, to provide for every period of non-productiveness,
~.7h.lchever of the foregoing causes it may arise.
,111. The two institutions open to the productive classes, are Sa-
vings Hanks and Benefit Societies, whose nature and scope, when
examined, will be found to offer but a very imperfect remedy against
the evil, being institutions wherein the limited means of this class are
-not best made applicable to their several ends.
.Savings Banks are of unquestionable utility, but they afford no
contingent future advantage, and, besides, the sum that can be
hoarded is ineora
du,ttive classes. mensurate with the wants of the middle pro.
Ii inefit Societies propose to offer provision in sickness and old
I,lge, hot their construction will be found imperfect, and their plan
the least profitable application of the means of economy.
Because sickness itself is not a calamity of equal probable
duration to the fluctuations in the quantity of employment
and other casualties, and misfekune, against which they offer
no protection.
2. Because, out of a given means, the sum laid aside for sickness
must diminish the provision for old age.
3. 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-
currence.
Various observations have been made on the duration of
-"nen, amongst the industrious classes, from an early period of life
Until its close. Those most in use are,—the sickness amongst the
Benefit Societies in Scotland, given by the Highland Society;—the
sickness amongst the 'showers in the East India Company's Ser-
;---the sickness amongst persons employed in Cotton, Silk,
Wool, Flax, and in the Potteries, by the Factoiy Commissioners ;
—and the sickness amongst the English Benefit Societies, from re-
turns made to the Society for the Diffusion of Useful Knowledge.
These results, though varied, show how inconsiderable is the
amount of sickness during that period of life, between the ages of
20 and 65, when each individuals 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
Factory Commissioners—
Cotton 21 to 61 7 27 1
Wool, Yorkshire 21 to 61 10 29
Ditto, Westof Elmland 121 to 61 8 13 }.. 7U
Flax, Yorkshire 121 to 61 9 1 1
Silk !2l to 61 11 4 J
Society far DiffUsion of Useful:
Knowlesige 2l to 65 IS 111 12Wt

Thus, it appears that the highest expectation of sickness, amongst
males, is twelve and a half days, and
the lowest
d
six days, each
year from the age of twenty to sixty-five; its mean duration,in-
clusive
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 for .3,- t
Eye 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
sod 156 days.
V. From the foregoing facts it must be obvious that provision in
sickness, or a Health Assurance by means of a separate contribu-
tion, is unnecessary, more particularly as such contribu-
tionseparat
must tend to waste the resources out of which the in
classes have to provide for the future. It also in effect throws the
burthen of the sick
permanentlyon one class exclusively, instead of
society at large ; who are thus Balled on for an act of benevolence,
while they are scarce able to do justice to the claims of their own
families. Besides this, no compensation
and old li
sgiven out of the contri-
bution for a provision in sickness age to the families of
those who never reach the age of 6:,), thougli'death should happen
immediatoy pree•ecii:so, itand,; if an assumed hypothesis is correct,
that sickness before death is no t more than five weeks, and taking
bed-lying-pay at 10s. per week, it will not unfrequently happen the
6111 y return a man may obtain as a long and steady eonSributor to a
ilenefit Society, will not exceed 505., a stun scarcely equal to one
hear's payment at a shilling per week, while-by his death he leaves
is family entirely unprovided for.
YI. It is to remedy these defects, inherent in the constitution of
Benefit Societies, that the National Loan Fund Life Assurance
society proposes to submit a plan of Deferred• Annuities on a new
principle, which will not only afford a more ample provi.sion. for oldae, and protection against sickness and misfortune—but addi-
tion,, the means, lit all times, of putting his energies in motion,. and
n the event of Premature death, a better protection to his family.
The plan proposed will embody several essential objects :
I• To secure an increased provision for old age out of a given
. render
rerring, by applying it exclusively to the purchase of a De-
eedndAer the
Annuity.
2 To
purchase of a protection in sickness unneces-
"r' by enabling the purchaser of a Deferred Annuity to
withdraw or borrow two-thirds of his previous payments.
3. By the use of two thirds of all his payments when required,
to limit misfortune and want of employment, and extend
the power 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
present misfortune.
4. To afford, at the age at which the Deferred Annuity would
commence, without reference to his tken state of health, the
option of receiving, instead of his Annuity, its value in
money, according to the value fixed on the eoutratt, or a
larger sum payable at his death.
5. In the event of death before the age at which he would
be entitled to his Deferred Annuity, to return two-third; 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 'sic Deferred Annuity into a present
Annuity.
VII. Nothwithstandino• the obvious and manifold advantages of
this plan over every other hitherto proposed, for securing present
and future competence to the industrious population, still more
striking advantages will be exhibited by contrasting its prospective
provision for old age with that offered by Benefit Societies. This
arises from the non-abstraction of a given sum for a separate bene-
fit in sickness, which protection,
by the operation of the Loan
Fund on the Deferred Annuity, is not only more ample, but other
misfortunes are provided against,
sepa-
rate contribution made for each which calculated, and a sepa-
sickness, the purchase of them- w
0,11
lwd h
eons et
hdeul
yraothiosonrbeqtuhaeb;mtehaants
oo
ff
providing for old age, while such a system must tend to discourage_
Productiveness, and afford no protection to a family
in the event of
iiremature death. The object this plan embraces is to open faci-
lities to the efforts of self-suort, to stimulate the independence of
one class above the forced benevolence of another, while it reeom-
Men& itself to the latter by diminishing the burthen of Poor-laws,
which .iaz been at all times irksome, disturbing the harmony and
fomenting Ihe mutual distrusts of society.
The following is a comparlson of the benefits to be derived from
06 contribution of Ls. per week paid into a Benefit Society, or to
kurehase a Deferred Annuity from the. National Loan Fund
fteiety
Age 29. lAnnuftylCash. PolicY
Sickness.! Loan, Death.

Age cr,
.................._:_. . Annuity Caslid l'olicv ISi ckneis. Loan. Death.
1,14ti0 ,
-----
. s.
S. -----
.E X,. S.
e
Bet nalLoanl'Ondlrred Annuities!
°litiou „, . i 47 16 331 11 466 (.1 %of the 3,', of the %or the
at 63 . -"' ”enefits, 1 payments payments payments
................. .1 received.
'ellt .
ditto,... Societies 26 0 Nil. Nil. allow. ' Nil. Nil.
...........
ances in
141410141 Loan Fund sickness.
°Rio 21' I 1 260 11 346J5 %of the %of the Sof the
4t j 1 .°f Benefits,
---:---- --_.......... paymentsipayments payments
received.
--

I -•
It is
not alone to the industrious classes this plan of Deferred
`annuitieswill be found efficient, in securing an ample competency
elerri-(` ago ; but also to that important class of the community who
labuilar their income from a combination of Capital and persona
To this class, the Savings' Banks do not afford a suffi-
inusnttly profitable investment ; and, indeed, the framework of such
tutions as have been designed for the more humble classes,
notiti,erbeen made to suit their wants or consult their interests, and
th..te 'lists no institution, at present, to which they can resort,
a " would at the same time foster their induitry,—secure to them
eel:lPeteney in old age,—and and protect them against the varied
casualtes 0f life. abe--
a The Tobleg of Deferred Annuities have been constructed with
effort
to gal the benefits that may be secured by the smallest
all eita4l4lr.ugity,:trid to suit the circutnstances and convanietice of
t 1 "e object of TAles'No. I. is to show the opti,;-, of benefits
the Payment of Is. per Iveck, or tn. 12s. per annum, will s6;ntro at
etr,iod of attaining- the Age of 50, 55, 60, or 65.
11.1,,ti rabies No. 11. show the Annual Premiums required to se-
ataea option of given benefits ;it. these ages,—the sum required
co ago to be paid down at. once to purchase them,--and also tin
i__ineat aro; age to be paid disparity, so as to enable the purchaser
vuosrtt ad of
P 5 1i) the premium at his own age, to pay that set down
savi„le,age of 2k and by this means' enabling the owner of a little
ove;14"-) turn it to 019 best acccunt. The Society will, more-
Atnou r,"ive all this sum ljy instalments, and two-thirds of the
ni• Paid n ay, at any time, be wiO)drAIYO dePilt 6f 00 policy,