Redemption Values

Extract

Reference has frequently been made to the fact that Life Assurance Companies are daily in the habit of undertaking liabilities which, in most cases, will not mature for a great number of years to come. As a rule, such deferment of the liability is welcomed by the offices as being in their view advantageous rather than otherwise. In most cases, however, it is not the office alone that undertakes liability. The policyholder on his part agrees to pay to the office a premium, it may be for a fixed number of years, should he live so long, or even during the remainder of his lifetime, no matter how long that may endure. It has been pointed out that, while the policyholder may at any time bring the engagement entered into between himself and the Assurance Office to an end without the latter's consent, the Company has usually no power to terminate the contract except with the concurrence of the policyholder.