The central Presbyterian. [volume] (Richmond, Va.) 1856-1908, 1869-04-07
For THE CENTRAL PRESBYTERIAN.
Is LIFE ASSURANCE MORALLY RIGHT?

| consistent WIN becoming truSI Ill IroVl-
dence; and, that it is species of gambling.
With view to simplicity and brevity, these
objections will be considered with reference
to what is the simplest, and as we are salts
fed, every way the safest and best mode of
life assurance-that upon the mutual cash
system. The other systems may be morally
defensible; but in them the question is much
more complicated. What then is the precise
nature of the transaction in question? Let
us suppose half dozen young men, associ
ates in business, from which they enjoy the
means of present livelihood and something
in addition; but with no such surplus as
would provide for theilEv families, if they were
taken away. Considering the uncertainty
of human life, they enter into mutual
agreement that, in case of the death of either
of them, the survivors will provide for the
bereaved family. Upon this indefinite un-
derstanding they rest satisfied for time.
But one of them happens to meet with some
statistical tables, from which he ascertains
that the joint expectation of life of the six
is 212 years. He hence proceeds to calcu-
late that if each one of the six will pay into
common fund $141.46 year, the aggre-
gate will be sufficient to create fund out
of which each family may receive $4,000 at
the death of its head. He proposes to the
others that they adopt this plan. They
agree, and appoint one of their number treas
urer, to whom the annual payments are to
be made. Thus we have full pledged life
assurance society. We will go with them
little farther. They reflect that whilst 212
years is their joint expectation of life, there
are many causes which may more or less
diminish that term; and they, therefore,
agree each to pay $3.50 year instead of
S141,46. Further, they do not let their ac-
cumulating funds lie idle, but invest them in
a form which combines the advantages of en-
tire security, with fair return of interest
Thus, from two sources do they draw a sur
plus above the sum necessary to secure to
each, after death, the $4,000 agreed upon.
AS to this surplus they agree that it shall be
distributed statedly among them as dividends
to be appropriated as each one may pre-
fer. One leaves his dividends to be
added to his policy, for the benefit of
his family, at last. Another applies his to-
part payment of his next premiums, and an
other lets them lie as safety fund, to which
he may resort under pressure at some future
time. The friends of the first authors of
this scheme, seeing its advantages, apply and
are admitted to the same benefits on the same
terms.
Thus have we every feature of completely
organised mutual life assurance society. 1t
only wants numbers to make it the counter
part of one of the great societies, now in op-
Grafton.
Now, wherein is there any want of trust
of Providence in all this The farmer who
sees the tokens of rain, hastens to bring his
new hay under cover. The prudent house
holder puts up lightning rod, lest per-
chance his house may be destroyed by light
ening. The minister of the gospel, going
forth from home, puts sermon into his
pocket, because he may be called on to
preach. He leaves his purse in the hand of
his wife, because he may be detained and his
family have need. Men everywhere and
constantly seek to clay up something for
rainy day" Is all this wrong? Does trust
in Providence mean supine indifference to
those intimations of the future which God
has given US, and neglect of those means of
preparation which he has placed within our
reach? And if these questions must be
answered in the negative, how can it be less
than criminal for US to ignore the testimony
which Providence gives us every day of the
fact that our families may be at once be-
reaved and destitute, unless we make provi-
sion for them in time?
But is there no gambling involved in this
business? The motive of that vice is cove
tousness, and the offense itself consists in a
stalking of the acquisition or loss of property
upon chance, without a sufficient valuable
consideration. The mere fact that there is
an element of uncertainty in given trans
action does not involve it in the stigma of
gambling. The farmer who buys new
reaper at the beginning of harvest, because
his old one may break in the midst of the
work, only exhibits forecast and prudence
Nor is life assurance thus chargable upon
the ground that the families of those who
die early, receive provision for which no
sufficient consideration has been paid. The
premiums paid are indeed the consideration
which legally binds the society to payment
of the amount of the policy. But back of
the pecuniary parts of the transactions, there
was the mutual guarantee, given by each to
all, of provision for the family of each de-
cedent, in succession. The value of that
guarantee, and the adequacy of the means
provided by the system for its fulflment is
readily recognized, when we limit our view
to the half dozen individuals instanced
above. In that case, We suppose, no one
would dream of impeaching the moral pro-
priety of the proceeding, And the princi-
pie remains precisely the same, if instead of
six we associate six hundred thousand. The