The Middlebury galaxy. [volume] (Middlebury, Vt.) 1848-1850, 1850-01-08
& Communications.
For the Galaxy.
Life Insurance Tables.

on Se'6c'sd risks in Europe and this country
arc reg erroneous. The Nor'hImDtonJ I able,
nov in use by the largest companies Iii Lon
don, makes the average expectation of Life
on person of 90 years of age 10 be only
80 Sll0O years: while from the facts collected
from the acfsaI results OF tie business of the T.
quiiahe Company daring Jty yeas il hasBcen
shown anil proved TO be ~ O5-l0O years. BY
the same Tables at 30 wears Of aye. the cxpec-
tation of Life is put down at rs 27-IOO years,
while facts taken from tic act'mi results Of Sir
~ ye1S business show and give 81 years and
by the same Table (accorling TO DIR. PRICe) a
man at 40 has n right to expert to live only %
years when sixty years results of business in
the Equitable Office give nearly % years; and
this is upon tho Incorporate rs well as other
risks.
The Oldest Tables row in use in London are
the northampton, formed hv Dr. Price, from
the Bills of Mortality KEEP, in the small parish
of " All Saints" in that town, from the wears
1875 10 1880, period offs wears. This parish
contained a little more than half the number
If inha' ans uf the small town of Norhamp-
ton in England. and formed on so Larrow a
basis is, of itself. wholly inapllicable to de-
terminc the chances of mortality or life in c
large and healthy country like tie United
States, and still more erroneous when used
TO ascertain the value of Prem rs upon Sc
kctod Risks of the ScJtSt and best Kind, and the
proportion or chances of mortality upon the
par 'icuar class of persons whose lives arc
usually insured. The calculations are other
wise erroneous on life assurances OF short dud-
fiOn, when pOlirics " run out" rs premiums are
then required to be paid under short contract at
the same rates as are charecaLle only upon
Risks intended TOR the rhoie period Of NE.
These erroneous English tables are still in gen
cral use both in the Cnired States and Great
Britain whereby GROSS IMPOSITION is
practiced upon the community, when it is known
that OAEHALF of the yearly CASH pay
mcnts required under their nsc of selected Risks
Of the best class viii mere than pay all usual los
SEES. particularly on assurances for limited per-
odS on the average losses in Il whole generation
of 40 wears The next oldest Tables in use in
England, are the "SwcGi.h," which ere G.
qally err noous, rs they slow only the average
chances Of mortality upon the wLole popu'at on
of Sweden and Finland from 1875 TO 1916,
period of Al wears. These Tables were compi-
led in l775. and revised in 1901 and 1905, and
do not give the relative chances of life apon the
different classes of the popu alton, nor upon the
more prudent and temperate classes who uSu-
ally insure; but include the intemperdts, the dis
eaSod and iHrdlidS of all kinds. who are rarely
insured. The third Table in use was formed
by DIR. PARIFUx, in France, from 1900 to 1896,
a period of only 27 years. and taken from the
Register Of deaths among The Monks. and from
the Nmnay in Paris which mode of calcnla-
lions and Table are equally erroneous. The
fourth, called the q Carlisle Tables" was form
ed from l779 TO 1877. during short period IF
only ngh years and from population Of only
eight thousand, in the town of Carlisle, which of
course is equally defective and inapplicahle TO
the risks Of the present day in the United
States. where people are more temperate and
careful Of health and life
In the use of these English Tables direct
frdld is praciiccd upon the community, upon
That class of insurers whose policies arc taken
ont under the Rates cidYgcaj,e for life contracts,
and unless the policies are taken cut for years
or for life they arc not allowed to participate
in the profits: il is a well known fact that no
Dne hGlf of the policies taken out for life ever
roniinue beyond 5, 10, or 20 years. but ere sui
fered TO expire by neglect in paving the pre-
MUM. This way of doing business is not mu-
ual, but takes the money from one and gives |
il to another without any value received. These |
Tables are formed upon the supposition that
he Company will have to pay a'fo'ai loss upon
lr0y policy originally mode for The 'rho'e period Of
ife. when fdcs have proved that, moro hdn one |
,0lf of that class of risks arc suffered 10 run /
'W and expire long before the dccease of the I
insurer; by such means the company can never
&c called on FIR any loss whatever: in Life In /
urancc the loss must he to'aL loss or moth
ng, while in Fire and Marine Insurance a
srge portion of their losses are made up in par
jdi and acreage claims.
a FIRE Insurance Co. wi h equal absurlit,
night adopt the same rule; 50 with n Marine
% for every House or Ship that is builr,sOon-
r Or later, is in one way or 0'her destroyed
many ships after having been insured in safety
pr 10 or 20 wears and after premiums have
een paid, equal TO their entire cost, are alter
yard lost ,ri hom Gny insurance, and the compa-
Y are thus enabled to make large dividends.
The objects of all assurances arc TO indcm
fy one for the actual loss upon any 9iren sWsn
t risk npon which he chooses to pay premi-
m a.leouafe TO the risk incurred. and not to
av more than double of the premiums that are
cccsSarv TO meet the ordinary losses, for the
urpose of accumuiating a large surplus fund,
D double the amount of the original sum in
urcd. at his decease, or such as may be re-
uired to meet the losses offu,ure generations, {
ossible to occur so years hence.
The principal of Life Insurance is the same
any other 1t is not designed to hoard up"
lrge profits beyond The sum insured but simply ,,
, pay n given sum of $1,000 or $4,000 to the
Ia7lg of the assured, at his decedse. For this !
,ason the cos of Insurance should be regulated
v the actpcl losses as they occur each present. +
ar. The Cash premiums in order that all {
asses may participate in its benefits, should be
ladc as lo'c as possible, consistent with perma-
emit safety but let the payment Of all unu-
nal losses be amply secured if necessary, to ten
mes the amount of the yearly payment rcquir- :
. in Cash. nd lot the D,losit Noes be
Iade sure by endorsers or hy lien on the .
oIicv, as is the case in Fire Insurance. q
The use CT the English Tables, when the cnor- t
Ious Rates are required to he fully paid IN t
ash each year, completely defeats the whole
biects Of these Benerolent 3? Institutions, and
nts the door in the face and eyes ofthe ry class
people for whose benefit they are designed. 0
The enormous and unnecessary accumula- t
on of Profits of some of the English Compan- n
$ during the past so years, in the useof these Ii
III Cash payments, is the strongest proof that "
eir Rates are toe high. Instead of inviting o
ltronage from all Gases their Institutions be- Il
,me useful only to the more wealthy, who are ii
DE to pay. 81
1t is hoped the new Company now commenc- b
g business in Montpelier will profit by these
nts, and that the gentlemen who have bee1 O
ltrusted with the work, will not orershoot their
ark or pcrvert the objects Of their new Com Il
my, Ivy falling into the same error as many l.
hers have done, by the boarding system. T. 2