Improved Method or Process for Effecting Life Annuities and Insurance.
Year: 1897

page_text: COMPLETE SPECIFICATION.
Improved Method or Process for Effecting Life Annuities and
Insurance.
I, THOMAS FRANCIS MYERS, of Devonshire Terrace, Bradford, in the County of
York, Insurance Manager, do hereby declare the nature of this invention and in
what manner the same is to be performed, to be particularly described and
ascertained in and by the following statement:-
The object of this my novel process or method of purchasing annuities and
effecting life insurance in combination therewith, is to so arrange the system
that, the representatives or estate of the purchaser is protected from loss, should
the purchaser die before the expiration of the term in which he would by the
terms of his annuity contract, have received repayment of the whole of his
purchase cost.
As an example of how my method or process may be carried out, say, a person 50
years of age desiring to effect an annuity of 100 pounds sterling per annum, and
at the same time effect a protecting life insurance; on paying the capital sum
of £1506 sterling to the insurer, the amount payable therefor being based on the
tables of mortality, the purchaser secures a guaranteed income for life of £100
sterling per annum which sum is equal to 6'64 per cent per annum on the amount
of capital invested on the purchase of the annuity, without loss or risk to estate,
should death occur, however, prior to the annuitant having attained to the expected
length based on the recognized and expected healthy mortality tables, meet that
eventuality in the following manner.
I take out a term policy for the annuitant, such policy being for an amount
of Insurance in case of death, decreasing as the years of the term decrease with a
corresponding decrease in the premium to be paid, such a document I term a
"crèdeldere policy." By this means the balance of the capital amount will be
returned to the estate or representatives of the deceased, should the purchaser die
prior to the recognised and expected time of mortality, the amount then received
plus the amount previously paid will be somewhat in excess of the amount
originally paid for the annuity together with interest on the amount invested or
paid for the annuity for the whole term, and should the insured survive the time
when the full repayment will have been made to him, he will enjoy for the
remainder of life a continuation of the annuity.
By this my improved method or process, consisting in the combination of two
policies, the loss of capital consequent on the purchase, in the first instance, of a
life policy by the payment of a single premium is entirely avoided, as an annual
payment is made to the purchaser and at premature death, the balance of the
purchase money is returned to the estate, by the "credeldere" policy explained
above. By the adoption of my system a person is enabled to effect an insurance
for a larger amount than is obtainable under the present system of insurance for
the same premium cost.
The method or process is also applicable to investments by Trustees and to the
reserve funds of companies, as, by its application, such funds may be absolutely
guaranteed against shrinkage, and a greater interest rate obtainable by the
guaranteed against shrinkage, and a greater interest rate obtainable by the
purchase of terminable annuities than under present conditions.

page_text: Having now particularly described and ascertained the nature of this invention
and in what manner the same is to be performed, I declare that what I claim is,
The hereinbefore described method or process of effecting the purchase of an
annuity and combining the same with a term insurance in the manner as herein-
before set forth.