The Sun.
London, England, 1846-05-18 00:00:00

! THE ACCUMULATIVE or DEPOSIT
AS-4,UR INCE SYSTENI INTRODUC HD- BY
- THE CITY OF LONDON LIFE ASSURANCE
SOCIETY.
The inestimable blessings which have been conferred by
life assurance companies--the valuable periodic extensions of
the principles of annuities and reversionary payments, which
have been made by mathematicians of the highest order—and
the consequent adaptation of the theory of contingencies to
meet the requireMents of society in all the intricate rela-
tions of purchase, sale, and investment,would seem to have
closed the door against the possibility of any further ex-
tension.
A perusal of the statement which has been drawn up by
the directors of the City of London Life Assurance Society,
explanatory of the new system of accumulative or deposit
assurance introduced by them, and which we are confident
we are but, anticipating the wishes of those of our readers
who are interested in the extension of the principle of life
assurance, in inserting at length in our present number,
will convince them that the accumulative or deposit plan of
that society is eminently adapted to increase the usefulness
of life assurance, and to make it subservient to the wants of
those who have hitherto, from the peculiar feature of the
usual system of life assurance, been deterred from resorting
to it.
The recommendations of the accumulative plan of the-
City of London Life Assurance Society, which are likely to
obtain for it so large a share of popular favour, are that it
combines the benefits of an assurance on life with those of a
deposit bank ; that for young healthy lives it offers ad-
vantages, on attaining the higher ages, incommensurably
superior to those which can be obtained by the ordinary
mode of assurance ; and that for the young tradesman or
artisan, whose necessities or liabilities render him incompe-
tent to incur a fixed annual payment, in the shape of a pre.
minim, to secure an unvarying sum, which an office would
guarantee to pay on OW failure of the life assured, it offers a
mode of operation under which a policy can never become
lapsed ; with other additional advantages, clearly pointed
out in the statement.
We would particularly direct the attention of parents and
guardians to the opportunity now afforded them, by the City
of London Life Assurance Society, for making provision,
either for the future wants of children, or, in the event of
their premature death, for the repayment of all charges in-
curred for their education and advancement.
_ The superior advantages offeed by the City of London

Life Assurance Society in other cases-, might also be pro-
minently alluded to ; but the annexed statement will be
found, on perusal, to contain so clear an exposition, and such
convincing examples, of the value and importance of the
principle of the Society's new system to the public generally,
and of the easy manner in which it may be carried out, that
each reader of it will not fail to be struck with that portion
which may apply more especially to his own individual case.
The tables adopted by the City of London Life Assurance
Society having been prepared by Mr. Rainbow, to whose
abilities as an actuary we have, on former occasions, borne
willing testi pony, will be deemed a sufficient security for the
safety of the peculiar plan of the Society, and the accuracy of
the calculations upon which their tables have been founded.
The system of accumulative assurance, while it renders
life assurance available to a large number of persons who have
been hitherto virtually excluded, offers such great and pecu-
liar benefits to parents, and all interested in the welfare of
young persons, that the Directors of the City of London Life
young
Society, in introducing it to the public as a new
feature in the great principle of life assurance, more valuable
and efficient than any which has of late years been suggested,
feel called upon to offer some explanation of its principles and
working, and to adduce some examples of its results.
• Under the ordinary mode of life assurance, as is well known,

by the annual pavm-ent during the whole existence of the

life assured. of a fixed premiutii, proportionate to the age of
the life at the commencement of the assurance, an.unvarying
capital sum is guaranteed to be paid by the office, whenever
the life so assured shall fail. Thus, a person at the age of
.20 may, by the annual payment of a premium of 201., ensure
to his family the sum of about 1,0001._ he be:!etit thus

gained is the immediate creation of A definite capital in the
event of death, howeer soon that event may follow the
opening of the policy.
By the new plan, the premium may be varied in amount
each year, to suit the convenience of the party assured,* or
after one, or any greater number of payments, it may alto-
gether cease, and not only will the assured not lose the'benefit
of what he may have heretofore paid, but he will be allowed,
on giving due notice, to withdraw the whole, or any part of
the amount so paid, together with the increased value which
the policy may have acquired, by a participation in the
profits of the company which, at every period of division,
will be given in strict proportion to the then existing interest
of the parties assured.
Upon the first payment, a capital sum equivalent to the
• amount paid, according to the age of the life at the time of
payment, is guaranteed on the failure of the life assured,
and upon each succeeding payment, a further sum is in like
manner guaranteed and added to the former ; and thus the
assurance becomes, as its title imports, " accumulative."
Taking, for example, the life before instanced, aged 20, pay-
ing a like premium of 201, the result would be as follows,
viz.—on payment of the first premium, he would be assured
for
during the second year, on renewing the pre-
mium, the amount would be ..
in the third year
in the fourth year
in the fifth year

and so on, increasing with each successive premium to the
utmost limit of his term of life. The Accumulative Assu-
rance would be, at the end of twenty years £BB4

of thirty years
of forty years...... ......
of fifty years
while, if at any time the premium should remain unpaid, the
only consequence would be, that the sum now assured would
remain unaltered, or the premiums paid wuld be returned;
that is to say, if the premiums were discontinued at the end
of twenty years, 884/., or forty years, 1,5001., would remain
the sum assured, without any further call in either case for
premium ; or should any circumstance arise to render a con-
tinuance of the policy unnecessary or undesirable, the whole
of the premiums, without deduction, would be returned to the
assured, together with the increase in value before alluded to.
The table adopted by the City of London Life Assurance
Society, and of which an extract is appended to this
riper, shows the amount which, at any age between
seven and sixty, would be assured on payment of a single
stun of 100 L, and from it may be ascertained the amount
of the Accumulated Assurance of any given number of years,

by merely adding together the tim.i;unts respectively set
oppositein the table, to the age at which each payment maw
have been, or is to be mad :—say, for example, that 1004
is paid at seven years of age, the sum immediately assured
is stated in the table to be £'27l 0 0

00/. at eight, the sum in the table is ...

tAccurculated Assurance in one year...£542 4 9
.001. at nine, the sum in the table is ........ ..... 270 12 5

t Accumulated Assurance in two years ...£ 312 17 2
and so on toties quoties, it being borne in mind that the
annual premiums need not be of one uniform amount, but
may be varied, or altogether omitted, as before explained.
Should the premium in any year be greater or less than 1001.
the sum assured by it will, of course, bear the same propor-
tion to the amount stated in the table, as such premium may
bear to 100/.

The peculiar advantages offered by the " Accumulative"
mode of assurance, will be found to be applicable to an in-
finite variety of cases ; for instance, parents and guardians
may make provision either for the future wants of children,
or in the event of Their premature death, for the repayment
of all charges incurred for their education and advancement.
Let a case be adduced in which it is determined by-a parent,
to lay by 501. per annum for the benefit of a child now ten

years oaf age, and to expend 751. per annum on his education
and entrance into life. By effecting an Accumulative As•
surance the case would stand-thus :-501. is immediately
deposited for the assurance, while the 75/. is devoted to the
purposes of education. If death should' occur in the first
year, the Company would pay 134/. 18s. 3d., which woul,l
restore more than both premium and cost for education. On
the payment of the renewal premium of 501., the sum as-
sured would become 268/. Bs. 3d. in the event of death during
the second year, and thus with each successive payment this
sum would commensurately increase, so that in the
3rd year it would be £lOO 9 6
4th ...
sth
6th
7th
Bth
9 11. • ll6l 18''''8*
1oth.
11th 1403 16 . 51
showing that, in any interval-from 10 to 21,there would haves
been the repayment, in the event of the child's death, of an
amannt exceeding the whole of the premiums and charges for
education, and in the event of his living, the refunding of all
the premiums paid as a capital wherewith to engage in bu-
siness, or the guarantee of an assurance of more than 1,400!.,
either increasing with every succeeeding premium, or remain-
in..t stationary should no such premium be paid.
Again, by it a policy for any increasing amount assured
could be opened at an equable premium, payable either dur
ing life, or for a limited term of years; end toe City of
London Life Assurance Society, in connection with this
branch of their business propose to grant such increasing
assurances, either with or without permission to withdraw
the whole amount of premiums paid.
And further, it frequently happens that it is desirable
in the case of survivorship annuities and contingent
reversions, to assure the opposite risk to that on
which the annuity or rever,sioa is dependent. By
the accumulative plan, the successive premiums and ac-
cruing interest on the total outlay may be provided for in
the cheapest and most perfect manner; while in all cases
where a present annuity is payable as the purchase for one
deferred, either for a given life or for a term of years, the
mode of assurance now suggested is the only one which can
be made to meet accurately the requirements of the case.
The accumulative principle of assurance may be com-
menced at any age, but to young and healthy lives in par-
ticular it off3rs a prospect of such ultimate advantage, as
will no doubt cause it. to be preferred by many on_ that ac-
count alone to the ordinary mode of assurance. For instance,
a life of twenty on payment of an. annual premium of 1004
will—

At 29 be assured for
At 39
At 49
At 59
At 69 , .. 8,583 1 5
At 79
while by the payment of the same amount of premium on
the same life, upon the ordinary system, the amount insured
from first to last will be 5.221/. Ns.
As this last application of the accumulative principle is of
so much importance, the following furtly'r example showing
the accumulated sum which will have been assured by the
payment of 101. per annum at various ages, commencing at
seven up to sixty years of age, may not be superfluous:—