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

THE A CCU MULATIVE or DEPO.SI f
ASSURANCE SYSTEM INTRODUCED 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'
mium, to secure an unvarying sum, which an office would
guarantee to pay on the 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 te 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 offered 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 testimony, 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 persona 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
Assurance Ssciety, 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 knower
by the annual payment, during the whole existence of the,
life assured. of a fixed premium, proportionate to the age 01
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. Thu., a person at the age of
so may, by the annual payment of a premium of 20L, ensure
to his family the sum of about 1,0001. she benefit thus
gained is the immediate creation of a definite capital in the
event of death, however 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
the amount so paid, together with the increased value whiet
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 assure,
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, pag-
ing a like premium of 201, the result would be as followsir
viz.—on payment of the first premium, he would be assure''
for £4B 1 ,sr
during the second year, on renewing the pre-
mium, the amount would be 95 11 °,
in the third year
in the fourth year
in the fifth year 234 7 v
and so on, increasing with each successive premium to tile _
utmost limit of his term of life. The Accumulative Ass%
Oa'
ranee would be, at the end of twenty years
1236
of thirty years
1,,50°
of forty years
751

of fifty- Years - l,7b'
while, if at any time the premium should remain unpaid , the,A
only consequence would be, that the sum now assured Nfon!,",
remain unaltered, or the premiums paid would be returned'
that is to say, if the premiums were discontinued at the endl
of twenty years, 884/., or forty years, 1,5001., would renn for
the sum assured, without any further call in either case
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, togetker 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
paper, shows the amount which, at any age between
seven and sixty, would be assured on payment of a single
sum of 1001., and from it may be ascertained the amount
of the Accumulated Assurance of any given number of years,
by merely adding together the amounts respectively set
opposite in the table, to the age at which each payment mil
have been, or is to be mad ,1 :—say, for example, that 100
is paid at seven years of age, the sum immediately assure!!
is stated in the table to be... .E271 0 "
1001. at eight, the sum in the table is ... .. 271 9
~..
fAccurplated Assurance in one year £5 ;2 4 ,
100/. at nine, the sum in the table is ........ 270 12 '
t Accumulated Assurance in two years £Bl2 17
and so on toties guoties, it being borne in mind that
.the,
annual premiums need not be of one uniform amount, but
may he varied, or altogether omitted, as before explais!A
Should the premium in any year be greater or less than Iw.`..
the sum assured by,it will, of course, bear the same propor_
t ion to the amount stated in the table as such premium o'l7
bear to 100/.
The peculiar advantages offered by the " Acctimulative"
mode of assurance, will be found to be applicable to an 111:
finite variety of cAses ; for instance, parents and guardian'
may make provision either for the future wants of children,
or in the event of their premature death, for the repayniel
of all charges incurred for their education and advancemen"
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 tea
years of age,, and to expend 751. per annum on his education
and entrance into life. By effecting an Accumulative As'
aurance the case would stand thus :-501. is anmediateli
deposited for the assurance, while the 751. is devoted to the
purposes of education. If death should occur in the first
year, the Comp-any would pay 134/. 18s. 3d., which would
restore more than both premium and cost for education. 00
the payment of the renewal premium of 50/., the sum srsured would become 268/. Bs. 3d. in the event of death during,
the second year, and thus with each ouccessive payment tbf-
sum would commensurately increase, so that in the 6
3rd year it would be £4OO 9 a
4th
sth
6th .
7th
Bth - 1038 14 8,.
9th.. .
10th ••• • 1283 12 5
11th 1403 16
showiig that, in any interval from 10 to 21, there would have
been the repayment, in the event of the child's death, of
r.
amonnt exceeding the whole of the premiums and charges n
education, and in the event of his living, the refunding 0 ,7„.
the premiums paid as a capital wherewith to engage Ill,„'",%
siness, or the guarantee of an assuram a of more than 14-li.'„.,
either increasing with every succeeeding premium, or reuasiu
ing stationary should no such premium be paid.
Again, by it a policy for any increasing amount assTe..d,
could be opened at an equable premium. payable either aut,
ing life, or tor a limited term of years; and toe City:::
London Life Assent-ice Society, in conn'xion with F.::
branch of their business, propose to grant such increasing
wassheurreanacpesr,efiseneiytnht.egareuwnbi,u,tuwfittsoetrio,without permission to withal.'"
the whole amount of premiums paid.
And further, it frequently happens that it is
in the case of survivofship annuities and contingent,,
revers=ions, to as,nre the opposite risk to that ii"
which the annuity or rever.ion is dependent:.
may be provided for 10
while in all case;
tchrueincLianpteerstesta
and
dn tmosthe total
perfectyt,,huo:unrbgmtelie a s the
premiums and an-
the accumulative plan, the . successive
purchase for one
annuity is pa) a
life or for a term of years, the
deferred, either for a given life
is the
only one which Oil i
mode of assurance
prospect such ult.
e of assurance May be Coa
The accumulative
parr
at
payment of an annual premium of I°° '
ticular it dr,rs a
t to beultimate advantage, :
will no doubt cause 1 preferred by many on that a'
be made to meet accurately
count alone to the ordinary mode of assurance. For instance'
aof tw_e_n_ty on rciaaaeynusnisnari eevn
Ire
healthy n t6 of
lives the desirable
case.i pa _.
.

At 29 be assured for ............ 268 2 8
At 39 ................................. 4,238 11 1
At 49 .................... ........ 5,925 6 5.
At 59 ................................. 7,365 11 1.
At 69 ................................ 8,583 1 5 •
At 79 .......... .................... 9,639 5 •
01l while by the payment of the same amount of premai—ured
the same life, upon the ordinary system, the amount ins
from first to last will be 5.22! /. 10s. le is °I
As this last applic ttion of the accumulative prineil?
owieg
so much importance, the following furth, r example the
the accumulated sum which will have been assured by aat
payment of 10t. per annum at various ages, comma"-',":
seven up to sixty years of age, may not be superfluous
Accruin
Age. Assamo....,'
_.--- A.
X 8* "9
48 866 70 9
50 946 13 9
tr, 1019 19 o
60 1087

Age. Accumulat
ce. ed I
A,e •
Aau. Accurancemulated
Aswran.

£ s. d.
20 362 1 0
25 477 14 5
30 565 17 2
35 686 11 1
40 779 19 8

s. d.
7 27 2 9
54 4 10
9 81 4 9
10 108 5 5
15 238 17 2

_
Accumulated Assurance at sixty £1,087 V 0
Ordinary Assurance, from first to last 684 °de.
It is not attempted to be denied, that, to the creditor wil° .0.
sires to secure his debt; to the assurer whose arrangernentsy;_t
quire the immediate creation ofan unvarying sum in the e a,
of death ; and to those who, assuring late in life,
arrived at the maximum of their responsibilities, the o
.atitt
nary method of assurance presetits obvious advantage•so; u
per-
it is submitted that to young and healthy lives, and :intling
have alrer c. 1.7,
sons who, from uncertainty as to their means of runnc have
through ife the payment of a fixed annual
been hitherto virtually excluded from the betne'nsiuely be-
assurance, there can be no plan presentgd so ei. responsibi"
neficial as the one now proposed. Before
theft' ble to secure
prea!,fits of life
lities commence, or their means fail, they are press upon
an increasing fund, and as their engagements

ream'
* No renewal of the usual certificate of healthSti • I bet
unless it is proposed to increase the amount of premiurn ber'
Of the previous year. Ai 00014
t Witha proportionate ;bare of pretitS en CaCh perio