LIFE ASSURANCE.

Evening Star, Issue 8811, 28 April 1892, Page 4

LIFE ASSURANCE.

TO THE KDITOB, Sla,—l wish, with yonr permission, to ventilate a question relating to the above subject, which is of interest to myself, and,

I have no doubt, to many others. I may display great ignorance of the whole subject of life assurance by raising the question, btit questions are always raised by ignorant people in order that their ignorance may be enlightened. My mind has been specially direoted to the questions I propose to raise by looking over a report of the A.M.P. Society, of whioh I am a member; but the matter is not peouliar to this society. It affects, I presume, the principles on which most if not all life societies and companies aro based.

I see by the last published report of the A.M. P. Sooiety that their accumulated assets amount to nearly ten millions sterling. This vast accumulation of money belongs to the members of the society. What I would like to know is when and how the members are to get the benefit of this enormous amount of money, to the accumulation of which they have contributed. I may be told that if the assets cf the society are large, so also are tbe liabilities. I know. These are set down as being at the 31st December, 1890, just over nine a quarter millions; but when are these liabilities to mature? The present assets of the society already realised exoeed these liabilities by over L 675.000. At the present rate of growth what that surplus will be when all the present liabilities are met I will not venture to say, Let me note one or two facts shown by the report before me, During the year 1890 claims against the society matured to the amount of L 479,872 15s Sd ; but these were more than met by interest alone, which returned to the sooiety L 543.497 2s fid. Repayments were made to members for surrendered policies, etc., amounting to L167.02110s sd, but as this was, I presume, a return of only part of the money whioh they had paid to the sooiety, it doeß not affect the question I am raising,

It will be seen from the above figures, that the liabilities of the society for the year were more than met by interest alone. But while that interest was accruing and the olaims were maturing renewal premiums were received to the amount of L989.35217s fid. At the same time new business was done, the premiums received for whioh came to L 120,016 9j lOd, the result of the year's transactions being, as Bhown in the revenue acoount, an excess of receipts over expenditure of over L 825.000, making the total assets of the sooiety, as I have already said, nearly ten millions sterling. What I should like to know is Why it is necessary to go on piling np millions of money in this way, and when the members of the sooiety are to have the benefit of their accumulations? I maybe told the members or their representatives get the benefit when their polioies mature by death or otherwise. But they do not, as it appear* to me, for polioies are maturing all the jbime 3 claims are being met, bonuses

I are being patfdj and the funds go on aooumu* latter all tJieaAtae. It Is stated in the report, whwfc;l,nrtvj9 been topkjlng over, "that the. receipts irom iflterestand rents Jiave been su.ffioient to pay all the fllaims arising from death and from endowment, assurances and endowments matured, and nearly all the sums expended in commission during the forty-two vears the society have been in operation, 75 per cent, of the premiums being still in the possession of the society. .. I may be, as I have said, and I probably am, densely ignorant about all these matters, but it does seem to me that the policyholders have been paying premiums in excess of what is necessary, and that it is possible to seoure good sound life assurance at a muoh less outlay by the assured than is now incurred. Will someone who knows better than I do kindly enlighten my ignorance?—l am, etc, Dunoe. Dunedin, April 27.