By the act 27 and 28 Viet. c. 43, government gave to the working-classes an oppor tunity of effecting small life-insurances, or of purchasing immediate or deferred monthly allowances or annuities, in a manner absolutely free from risk, as the credit of the nation itself is pledged to meet the obligation purchased by the subscriptions or payments of the contributor. A great number of people have availed themselves of the new facilities, but it is probable that very many more would have done so had the scale begun at a lower and been continued to a higher point. At present, no life can be insured for less than £20, or for more than £100. sow, many people are willing enough to insure for as much as will cover their funeral expenses, say for £10, who would not be disposed to make further provision for their families. This class, and it is not a small one, is practically excluded from the benefit of the government system, and it would be well, in future legislation, to reduce the minimum to at least half its present amount. At the same time, the maximum might be safely increased to £200 without interfering with the legitimate business of life-assurance companies.
These government insurances are effected through the agency of the post-office. A list of officers authorized to act may be obtained at any post-office, and at the places so authorized all necessary information and forms of proposal may be had. There also, when filled up, the forms of proposal may be delivered. The premiums charged vary with'the age, but not with the sex, of the person to be insured, and the mode in which they are to be paid. For example, the life of a man or woman in his or her 30th year may be insured for £100: By a single payment £43 3 7 By an annual payment throughout life of 2 6 7 By a quarterly payment throughout life of 0 13 0 By a monthly payment throughout life of . 0 4 4 By a fortnightly payment throUghout life of 0 2 2 By an annual payment until the age of CO of.... ....... 2 13 10 By a quarterly payment until the age of 60 of 0 15 0 • By a monthly payment until the age of 60 of 0 5 0 By a fortnightly. payment of . 0 2 6 Smaller sums may he insured by proportionate payments, but no one payment must be less than two shillings.
If after five years' payments the insurer desires, or is compelled by circumstances, to discontinue his insurance, a portion of the premiums, not being less than one third, will be returned to him.
The sums charged for the purchase of immediate annuities vary with the age and sex of the person on whose life the annuity is to depend. Thus a man aged 65 can purchase an immediate annuity of £10, payable half-yearly, for £88 18s. 4d.; a woman of the same age can purchase a like annuity for £103 16s. 8d. A man aged 70 can purchase an immediate annuity of £10, payable half-yearly, for £73 3s. 4d.; a woman of the same age can purchase a like annuity for £84 19s. 2d.
The sums charged for tile purchase of deferred annuities, or deferred monthly allow ances, also vary with the age and sex of the annuitant, with the number of years which are to pass before the commencement of the annuity, and with the conditions of the contract as to the mode of purchase, mode of payment, and return or non-return of purchase-money.
When no part of the purchase-money is to be returned, a man aged 30 may purchase a deferred annuity of £10, to commence on his reaching the age of 60, and to be pay able half-yearly, either by an immediate payment of £24 3s. 4d., or by an annual pay ment, until he reaches the age of 60, of £1 8s. 4d. A woman of like age may purchase a like annuity by an immediate payment of £32 8s. 4d., or an annual payment up to 60 of £1 17s. Gd.; and a man aged 30 may purchase a deferred allowance of £2 7s. 3d. per month, to commence when he reaches the age of 60, by a payment until lie reaches that age of 8s. per month; and a woman aged 30 may, by a like payment, purchase a deferred allowance of £1 16s. 7d., also to commence at 60.
Purchasers of annuities are permitted to elect whether the purchase-money shall be returned to their representatives in case of death before reaching the stipulated age, or to themselves in case of desiring for any reason to withdraw from the arrangement; but for this privilege, they must. pay a higher price. Thus, instead of the £24 3s. 4d.
referred to above, the purchaser at 30 of a £10 annuity, to commence at 60, would have to,pay £40 9s. 2d., and so in' proportion. No annuity can exceed £50 per annum, or £4 3s. 4d. per month, except in the case of husband and wife, who may each be insured or purchase an annuity to the full amount allowed by the act.
After many fruitless attempts at legislation, an act (38 and 39 Vict. c. 60) was passed in 1875 to consolidate and amend the law relating to friendly societies. It deals with (1) all societies which provide for the relief of members or their relatives during sick ness, infirmity, old age, or widowhood, or for orphans during minority; for small insur ances on occasions of birth or death; for maintenance of members in distress, or when on travel in search of employment; for endowment of members or their nominees; and for insurance of tools or other working implements up to fifteen pound value. It is, however, provided that uo society assuring annuities exceeding £50 per annum, or gross sums exceediug.„-E200, shall be registered under the act, and that no sum exceeding £6 altogether shall be insured or paid on the death of a child under five years of age, and no sum exceeding £10 on the death of a child under ten years. It also deals with (2) cattle insurance societies, to whatever amount the insurances extend: (3) benevolent societies; (4) working-men's clubs; and (5), with certain limitations, specially authorized societies, for any purpose to which, in the judgment of the treasury, the act ought to extend. The act establishes a central office, with chief registrar and assistants, whose functions are to examine and certify rules, to prepare and circulate mode] forms of accounts, balance sheets and valuations; to collect and publish statistics of life and sickness, and other matters applicable to the business of friendly societies,; and to con struct and publish tables for the payment of sums of money at death, in sickness, old age, or other calculable contingencies. These tables, though intended for the guidamie of societies, are not to be compulsory, but no society granting annuities can be regis tered under the act unless its tables are certified by an actuary approved by the treasury. All societies are to have registered officers, must appoint trustees, provide for efficient audit, and furnish classified returns of receipt and expenditure annually to the register. Friendly societies must also,.once in every five years, make a return of the sickness and mortality of their members, and prepare a valuation, either by their own valuer or the registrar, of their assets and liabilities. The nominee of a member may be paid a sum not exceeding £50 on the death of the nominator, and societies are empowered to pay a like amount to the representatives of a deceased member, without letters of administra tion.' Minors may be members, but they are not permitted to hold office. Societies may invest moneys in the post-office or other savings-banks, in the public funds, with the commissioners for the reduction of the national debt, in the purchase of lands or the erection of buildings for their own use, and in other securities directed by their rules. Under certain circumstances, and with specified guarantees, loans may be made to members on personal security. Officers are to provide sureties and render accounts, and provision is made for arbitration or summary legal jurisdiction in cases of dispute, as also for amalgamation or dissolution. The act bears abundant evidence of the care bestowed upon it in its elaborate arrangements for registration, and other precautions for the safety and success of the societies to which it relates.