Page 3 Advertisements Column 3

Hawke's Bay Herald, Volume XXI, Issue 5414, 21 June 1879, Page 3

YOU ARE REQUESTED TO CAREFULLY CONSIDER THE FOLLOW ING REASONS WHY IT IS TO YOUR INTEREST TO ASSURE AT ONCE IN THE AUSTRALIAN MUTUAL PROYLDENT SOCIETY, (ESTABLISHED 1849), FOR LIFE ASSURANCE ON THE MUTUAL PRINCIPLE. THE OLDEST MUTUAL LIFE OFFIOB IN AUSTRALIA. i MEMBERS INCUR NO LIABILITY OF PARTNERSHIP. ' COMPLETE SECURITY IS AFFORDHD BY AN ACCUMULATED FUND OF UPWARDS OF £2,620,000. mHIRTY YEARS ago when the Society was Established by two benevolent men, -*- Thomas Holt, Esq., and Thomas Mort, Esq., it was not until the former gentleman guaranteed to make up the deficiency should a death occur before there were sufficient premiums to pay the claim that persons were willing to join. Now the Society numbers over 35,000 Members and, as these Members are distributed over the various Australasian Colonies, all Risk of .heavy losses by the outbreak of an epidemic or other exceptional cause of mortality is t avoided. The fact that the Society's operations are extended over so many Colonies also affords great advantages in the Investment of its Funds; over £20 ,000 were some time since cleared and distributed amongst the policy holders by tl ie purchase of New South Wales Debentures at a discount and their disposal at par. Panics occurring in any one colony cannot affect a Society having its egga in so many different baskets. As the Society, by its Act of Incorporation, is prohibited from granting Loans on Personal Security, the Funds are safely invested in Government Debentures,. Loans on Mortgage, and other first-class securities. Having completed its 30th year., it has safely passed the ordeals to which all new Life offices are exposed ,' it he.s, moreover, lately stood the teat of olose scrutiny into its position, by four eminent English Actuaries. While hundreds of proprietary Societies have failed, NO MUTUAL OFFICE THAT HAS BEEN IN EXISTENCE 20 YEARS HAS BBBN KNOWN TO FAIL. UNEXAMPLED PBOSPERITY ii evidenced by the following facts : — 1. There are over 35,000 members distributed over the Australasian, Colonies , whose assurances represent £13,000,000. 2. The annual income exceeds £630,000, or more than £1,700 a day, a Bum exceeded by the income of only two offices in the British Empire. 3. Upwards of £900,000 have been paid in satisfaction oi Death and Matured Claims. 4. Every death claim has been paid out of the interest on the premiums alono. 5. Only about seventy persons nave died out of each. 100 caloulated upon, in other words the Society has only required to pay about £70,000 out of every £10C>,000 expected and provided for. 6. For the last four years consecutively the Mutual has transacted an amount of new business larger than that of any other office in the British Empire. 7. This new business has been secured at a rate of expense below the average of that of all the successful English offices, less than the average of the American companies, and but little more than half that at which the new Australian offices are managed. It is confidently believed that no society in the world has met with equal success. It should be remembered that large numbers are essential to safety in Life Assurance, because while nothing is more uncertain than the duration of individual life, few things are less subject to fluctuation than the average duration of life when large numbers are concerned, '" THE WHOLE PROFITS are divided amongst the members in Bonuses declared every five years, and will be paid in Cash, added to the Policy, or devoted to the future reduction of premiums, at the option of the assured. More than £900,000 have been thus divided. Larger Bonuses are issued by this Society than by any office of a similar age in. any part of the world ; to the uninitiated they seem impossible. Policy No. 4 issued in 1849 for £250 was in 1873 worth £603 „ „22 „ 1849 „ £200 „ „ £475 „ „ 48 „ 1850 „ £600 „ „ £1231 „ „ 88 „ 1851 „ £1000 „ „ £2208 Policy No. 118 issued for £500 became a claim after 19 years and 7 months, and hp.d reached the turn of £876 14s lOd. Policy No. 975, issued for £500, became a claim after 15 years and 11 months, and had reached the sum of £815 10s 7d. Polioy No. 2766, issued for £500, became a claim after 12 years and 4 months, and had reached the sum of £725 15s 7d. As the business of the Society increases each year, future bonuses may be fairly expeoted to be larger than those granted in the past. LIBERALITY TO THE ASSURED is manifest in the Regulations. No Entrance or Medical Fees are charged. Leave is granted without extra charge to travel all over the world, and to reside in any part thereof, distant more than 25 degrees from the Equator. Members may engage in any employment after they have been assured. Policies do not become void by death, by suicide (except when committed within thirteen months from the date of the assurance), duelling, or the hands of justice, nor although the assured contracts habits of intemperance or is convicted of felony. Policies of five years' duration are indisputable if the age has been admitted and the Life has attained the age of thirty. If a policy exists for three years, and the member fails to pay the premium, the office pays it for him, charging it against the surrender value, until that has been exhausted ; so that, if the member dies, the overdue premium, with interest, is simply deducted from the amount insured. Policies are not irretrievably forfeited unless the Renewal Premium remains unpaid for thirteen months after the Surrender Value of a Policy has been exhausted. If a policy exists for three years, members can borrow 90 per cent, of its surrender value on no other security than the policy, and no charge whatever is made but 7 per cent, interest ; the loan to be paid back when the member chooßes, or it can remain a debt against the policy, to be deducted at his death. '. • Example.— Three years ago a member made use of his policies in this way, having at that -time paid into the Society nearly £1200 in premiums. Being present at the Mataura when a Government land sale took place, and not having sufficient spare cash at the time, he merely signed a letter provided by the Society, handing his policies as security. He was able to borrow nearly £1100, with no cost whatever to himself, simply agreeing to pay 7 per cent, per annum interest, and may pay back any portion of the loan any day he chooses without giving notice, and the interest on that portion caases the dayjhe repays the amount. The polioy is legally secured against insolvency, on a graduated scale, by Act of Parliament, and, when it has existed thirteen months, it is praotically indefeasible, for then even in the event of death by suicide the claim is paid. NO FEAR OF LOSS need be entertained, as if a member finds himself unable to pay any further premiums he can exchange his present policy for a smaller one. Example.— M. A., aged thirty, insured his life in 1869 for £1000. In 1873 his total premiums paid amounted to £129, and as he did not wish to continue his policy the office gave him another one for £190 in exchange for his policy aad bonus ; and, although he will never pay any more premiums, his £190 policy will go on increasing all through his life, and may increase to £290, £390, or much more if he reaches old age. The Society being entirely under the management of the members themselvoß, every member having a vote for each £100 assured, exercises the most generous and careful administration, and such instances as the following have been repeated : Mr 8., who was a resident at Oamaru, was insured for £150, and had been a member eighteen months. The thirty days' grace had expired, and he died when his polioy was three days overdue. Owing to the representations of the local agent the office paid the claim in full ; but no oases of an opposite character settled by a oourt of law can be cited. Assurances may be effected on a single life to the extent of £4000. Claims arising by the death of the assured are paid one month after proof of death, thus securing IMMEDIATE PROVISION. The immediate provision secured by a Life Policy makes investment in a successful Mutual Office the very best that can be made, for not only is interest obtained on the premiums, but the moment the first instalment of premium is paid the full amount of the policy is immediately secured. Example.— A Government clerk insured in the Mutual, at Wellington, on the 10th of the month ; ten days after he took cold, ten daya later he was dead ; and although he had only paid one premium the whole £500 for whioh he was insured was handed to his widow. A life policy is often valuable to cover the balance due to a building society, business, or any liabilities, as the following example will explain : — " A member died some years ago in Nelson ; his liabilities amounted to scarcely £100. His creditors not knowing that his life was insured for £100, offered his house and shop for sale! although the property was worth over £500. The notice of sale being short' and everything at that time being much depressed, the only tender that came in was £200, and a property worth £500 would have been sacrificed for £200. The policy was paid, and not only prevented the sacrifice but secured the business for the benefit of the family ; and about Is per week was sufficient not only to secure £100, but to save a properly worth £500 and the business to boot." Looked at from THE SOCIAL ASPECT. Life Assurance is not a luxury but a necessity. Economy is the science of avoiding unnecessary expenses, but no expense is more necessary than this to the head of a household. If the bread-winner finds his annual income— whether £100, £200, £300, or more —barely sufficient to meet the requirements of his family, is it not his' duty to remember the position in which they would be placed in the event of his death. Surely in jaany cases, where there iB no other provision, neglect becomes criminal! Hard times offer no excuse if Life Assurance is practicable by any self-denial. The greater the trouble to make ends meet, the worse would be the widow's position if the bread-winner were taken away. THE LOW RATES CHARGED bring Life Assurance within reach of all. £100 may be secured at the death of a person aged 21 for 0s 7d per week. it it tt » „ 30 „ Os 9d „ a a t> it »> 40 „ Is Od „ it it it tt >t 50 |, Is 6d „ £100 and large Bonus additions may be secured at the death of a perßonaged 21 for os9d^ it a >t a a „ 32 „ lsOd( per t> it a it a m 45 „ la 6d f week a «> j» it it v 53 „ 2s Od ) Approximate intermediate rates may be easily calculated. For a quarterly sum of £3 3s 9d a young man aged 20, can secure £500 and Large Bonus additions to be paid to himself at 55, or to his friends if death occur previously. The Mutual Life tables " without participation in profits," are lower than those of any Assurance Institution in these Colonies ; while a still lower net cost results from assuring under the tables " with profits" and deducting the cash value of Bonuses from the Premiums paid. At the end of Five Years a member, aged 25, who takes the Cash value of his Bonus, finds that his Assurance for £100 has only coat him £1 8s Id per cent, per annum, or 6 £d per week.