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Some of the Modern Developments of the Life Assurance System

Published online by Cambridge University Press:  18 August 2016

Benjamin Newbatt
Affiliation:
Medical and General Life Assurance Society

Extract

The subject upon which, at the suggestion of your Council, I have undertaken to address you to-night is “Some of the Modern Developments of the Life Assurance System”, including under this heading not only those which most of us will regard as improvements, but others which some among us may consider mere excrescences and eccentricities. The subject, as I have found somewhat to my cost, is a very large one, needing for its full elucidation an enormous mass of detail, which, were your patience equal to its due exposition, would not, I think, bring with it any corresponding pleasure or profit. I propose, therefore, to treat the subject on somewhat broader lines, in which I shall use details only so far as they may illustrate principles.

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1895

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References

page 20 note * Since the above was written, a third plan, in which medical examination is dispensed with, has been formulated. In this case, a premium much above the tabular premium at entry has to be paid for seven years, when it is reduced by one-half, and then becomes less than the tabular rate at entry. On examination, it will be seen that the excess of premium over the tabular premium paid during the first seven years, after providing for the deficiency in the tabular premiums to be paid subsequently, leaves an initial single premium of some £5 or £6 per-cent as the monetary compensation to the office for the unknown risk it assumes. A further protection to the office, though it cannot be said to be an advantage to the assured, is to be found in the fact that only non-profit endowment assurances are granted under this scheme, and of these, only such, apparently, as mature at age 60 or earlier. My experience makes me very sceptical as to the willingness of men, believing themselves to be sound, to fine themselves to such an extent for a mere whim, while it affords still less ground for belief in the sufficiency of the fine as a protection against those who have their own sufficient reasons for refusing to be examined.