LECTURE ON LIFE ASSURANCE.

Auckland Star, Volume VI, Issue 1662, 16 June 1875, Page 2

LECTURE ON LIFE ASSURANCE.

Mr. W. A. TIIOMSOW, travelling agent and leeurer to tho Australian Mutual Prevalent Society, gave an entertaining and instructive iecture on " Life Assurance" at the Ponsonby Hall on Tuesday evening, June 15, when Geo. W. Owen, Esq., took the eh i<\ Mr. Thomson said, in lecturing on life assurance, I fahali t-ndeavour to m;ke popular aud undtr.'■tano'able much that has been locked up in the libraries of the learned,and to rescue from a delude of mathematical formula) aud scieutific inyttilication (totally incomprehensible to the majority of my hearers) gdms from the great authors who have raised the science of life assurance to what it is by explaiuiug those principles vhich no longer require algebraical demoustra ion. By diagram illustrations I shall exhibit to you the progress of life assurance under the mutual or cooperative system, Hamely, the Australian Mutual Provident Society. It was established in 1849, and its first year's total receipts amounted to £2(57 14s 9d. In April, 1875, its invested capital was £1,538,947 2s. Od. The property of the assured, and possessing an annual income of £359,742 175., a rate of progress never before achieved by any financial institution in the world during the twenty-five years of its existence. The Society had paid £400,000 in claims at death, and had returned in reversionary bonuses to the assured one million one hundred thousand pounds, representing a cash value of £411,784 sterling. These profits could be taken by the assured in cash, or applied for the reduction of premiums, or as addition to the sum assured, at the option of the member. If left; to fructify at compound interest, the policy would double in amount in about 26 years. If used for the reduction of premium payments would cease in about 20 years. If the bonus was taken in cash, the assured must be in a position to invest the amount at compound interest, or it would be better to leave it as an.iaddition to the,policy.—The lecturer stated that the policy holder could borrow ninety per cent of the surrender value of the policy ; that thirteen months' grace was allowed for the renewal of a lapse policy, and to prevent for future the bonus if left, would be used for the payment of premiums as they fall due. The lecturer observed that it was thought by some persons that the New Zealand Government Assurance was cheaper than the Australian Mutual Provident Society. This was never the case, and is clearly shown by the late tables published without profits, the rates of which are lower than any other Assurance Institution in the Australian colonies or New Zealand. Mr Thomson ai-ked his audience to consider for a moment the utter impossibility of any Life Assurance Institution competing with the Australian Mutual Provident Society, where all the profits were divided amongstjthe assured, and the highest possible interest obtained on the investments with approved security. The following diagrams were exhibited :—The mortality tables ; the various modes of applying the bonus ; the investments of the Society ; the lombardian system of investment ; Life Assurancemeasurementindebtedness ; compound interest tables ; diagram explaining the non-forfeiture system ; weight for age, &c , &c. ; the effect of intemperance on a Life Assurance risk. The lecturer explained that all policies were protected against bankruptcy by the Societies Special Act first used in Sydney, and afterwards adopted in New Zealand. That all policies were guaranteed by the New Zealand Government, and that the loan to that Government amounted to £167,998 7s lOd. Further description of the many advantages brought the lecture to a close. Mr James Morton proposed a vote of thanks to the lecturer, and expressed his satisfaction at the complete manner in which Mr Thomson had treated the subject, and added that by the assistance of the diagrams, it was understandable to all. The usual vote of thanks was passed to the Chairman, and the meeting terminated.

The Onebunga meeting under the Presbyterian series of revival services, was held in the Church on Monday night. Ihe Rev. Mr. Brown conducted the services, and the Rev. Mr. Cathcart gave an outline of part of Moody and Sankey's work in the north of England. The Rev. Mr. Macnicol spoke of the necessity of earnest prayer for revival. The Piev. Mr. Scott engaged in prayer, and the meeting closed. Tht r j was a fair attendance of earnest hearers.