The Nineteenth Century , No 182, Apr 1892 [‎119r] (242/244)

MW
INVALID LIVES
it-
T
HE practice of granting Policies on "Invalid" lives—
i .e., lives below the average standard, either from
personal defect or hereditary taint—was established by
the CLERICAL, MEDICAL AND GENERAL
LIFE ASSURANCE SOCIETY in 1824, and has
been successfully continued to the present time. Much
of this success is due to the fact that the Bonus System
of the Society as applied to these Policies has been
devised—and in this respect it stands almost alone—to
ameliorate and, should the life be prolonged beyond the
estimate, ultimately to nullify the original surcharge.
By the aid of the subjoined table of Bonuses actually
allotted at the present division this will be made clear.
Specimens of Bonuses allotted to Policies of £1000.
January 1892.
Duration
of
Policy.
HEALTHY LIFE.
Real Age) a c\ I Premium \
at Entry f 40 : 10 : O/
Cash.
Life
Reduction.
Reduced
Premium.
5 years
56
0
0
3 11 8
28 18
4
10 „
56
0
0
O
M
O
24 17
6
15 »
56
0
0
4 12 6
20 5
0
20 „
57
0
0
5 11 8
14 13
4
25 ,,
57
0
0
6 15 10
7 i7
6
INVALID LIFE.
Real Age 40, but treated as of
Assumed Age) tz m f Premium \
at Entry ) 50 \45 : 7 : 6/
Cash,
78 o
79 10
79 10
80 10
82 o
Life
Reduction.
Reduced
Premium.
692 38 18 4
7 15 0 31 3 4
992 21 14 2
12 o 10 9 13 4
r Premium
a o J extinguished &
1U Zj. Bonus added
V- of £40 ; 4 : 0.
A man of the real age of 40, for example, if charged the premium for age 50, would be
allotted from time to time the larger Bonuses shown in the Table as given at age 50, These,
it will be seen, are not only larger in themselves, but each of Bonus produces a larger reduction
of premium. On the assumption that like Bonuses will be given in future about which, of course,
no pledge can possibly be given—a man entering at the real age of 4°) charged the rate for
age 50, will at the end of 10 years have to pay a smaller premium (viz.: £31 : 3 : 4) than the
healthy premium at 40 (viz.; £32 I 10 : o), and thus from that time be more than freed from the
original surcharge. In 10 years more he will have to pay an absolutely less premium (viz,. £g . 13 . 4)
than if lie had been treated at the outset as a healthy life, when the reduced premium would have
been £14 : 13 : 4. And, finally, at the end of 25 years, not only will his premium be extinguished,
but a Bonus will attach to the Policy,—a condition he would not nearly have reached had he been
treated as a healthy life at entry and charged the premium for his real age. The effect is even more
striking when the reductions allotted to a man entering at other assumed ages (for example, 60) are
compared with those granted to one entering at 50. {See full Prospectus.*)
8 EXCHANGE STREET, MANCHESTER; 3 BENNETT'S HILL, BIRMINGHAM.
.V ■.
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