Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1850-02-12
WHAT IS LIFE ASSURANCE
ZOE &c srIEIr OF 1ErrEasox.

TOE TfGE SrlEiT OF JEFFERSON.
we have already glanced at the EOunda,ion Of
the system Of Lie assurance. and seen that the
fTcs DI HasrfcEJ'y has been Rscertained IN Eng
land, aud may De relied upon with all the eOn6-
d:Hce which mankind rePOse IN the operation Of
a general law.
Yet we do not mean 10 convey tie idea, M
thing more need be done ;n perfect a. otherwise:
there 10 sIill murh TO 10 done eTen In the best
conducted institutions at the segeTal classes Of
their mcInhers ID proof Of what xe urge. see
the vast advance made since the period when the
youngest and most select lives were rated, with
out distinction, with The cd ard inlitm. But al
though the excessive and unequal changes Of
those early times OF ignorance and oter caution
have gradually given place 10 rates. generally
speaking, graduated according 20 the sEes Of par
ties, ife6e yet remains tor iuaPt tOVements IN
applying the facts OF ascerIained mortality so "a
:" do justice TO t:e sevcTa ages of the assgred !;
TO meet with more accuracy the different degrees
Of Contingency.
we have in . f1EEHer paper presented IA fan
one OF the fundamental PrineiPles-in fact tho
ciiief--ri Life AsFHFsnee &" the aeceTtained or as
suGlel TaIe of m0EtatiIy.'' This being the fir,t
priucPle it is not difficult to find BY Calculation
what single NJ annual pat meuG ~ zach OF a muI.
time Ot individuals would provide eertaiu Fre-
cited amount To be sid oreI on the death Of each
Money. ko:scver, dt'es uOi, in a-commeTciaI COM
rnan''y. reEl single day nnprGducIiie e. aud the
interest to tie derived by tie use Of the money
while IL remains IN tie eUHimOn fund thus mann
fest!T forms the other main elements along with
the raIe nl mortality. in determining the eaIe Of
prem rns wtic! ass urAuees are efeC ted by any
association.
Fer iI!HsIarion-sake in cxpIicating the fnar-
cal feature OF Late Assurance e wiII make such
extracts from IiiI!nsh's & Familiar insfrafious
Ut the Theory and Pacific Of Lie Assurance
these extracts will Be fcpnd interesting as show
'DE the manner IN which Assurance Societies
accumulate their funds by compound interest
Iete-eStis of two kinds simple and eouapouRI
S Smp!e interest 10 allowed for the nse Of the snm
advSuced, and Is always proportional 10 the term
and the sum of the in6H- This is the EngIish
s"ie- In ""F country tse lcFsI interest (Unifed
Siatesl Is six per cchfGm per aanHm- The va
Tlons States regulate the LAWFUL interest within
their own teTTTtOries--it varies fIom 6 20 ~ rer
cent, u iIh HsnTy laua sflxed
coE1P0lsHd iHteTezf Is the Teeompense for the
loan and The tOrbeaEanee Of The simple interest
arising tiIeTefFOni, which added fo tbe frioinsI
sum al each period of its becoming due. and torus
new PRINCIPAL Upon which siMTle faEeytsfi Is paid
10 the next period, when tie same process Il nm
dergone, until the esme Is repaid win its aeeu-
mutations II Willie evident thai Tie shorter the
period agreed ON tor the payment of The interest,
tue greater will be the sccumaIation At the end
OF the term for the payment Or the loan
For example, snPP''se the sum Of $4,000 II s
per cent per annRm compound interest 70 each
OF three persons A, B. and G, for the term Of 40
yeArs-A 10 pay his interest yearly, B half year
ly, and quarterly. A AZ the eud Of The period
would have TO pay the lsDdet-thLowing of
,-..sL ;isSi.:o, y - q = =,
,s;n liz, sr, -, i.,,, ,sII
e.n;,.,;a, n -. -
@os bt, sso Ihe ,,e3, .
To- or aoy other rericdirsI -. n
example 10 e 5. d. Ia person saEed fIo0 per
sHnum for t"eDiy years. and az the end Of every
year leut u VIII interest sc u became Que st
per cent per AMMAN, AT tic end tf that time It
WOuId amount TO f3 SGf IEe r1n9d4 Tf Sn=foaH
of v-ziiir,, ,o Hard 1.iOn - .L,SS - -. -
e., :, :; - &C. = ii t AiIe e4l1 " - ee's &c
ie"t ~ A sSIs oi |-1g az tta4i SeaTtF eFodes ano
received the Interest bait yearly, his savings in
the sane term Uoait amount TO Es $40 p, SD.