LIFE ASSURANCE.

Hawke's Bay Herald, Volume XXI, Issue 5416, 24 June 1879, Page 2

LIFE ASSURANCE.

Sir,— ln your issue of v thiSl -ridnflnj^Mi*. U Grubb, of the Government Life Ih¥u*_ince Department, takes exception to a statement made, in an advertisement of the Australian Mutual Provident offi^|pthe\_effect that assurance can be obtaihed^iii i the latter office at a cheaper rate thanin>~in any other assurance institution in these :;. •colonies./? ; A, \ , ' --' r 7,: x '?\''{, :d ® Yi \ '•- In' contradiction of this statement ]ifef -Grubb asserts that a person aged 30j&ji assure for £500 in the Government at nan •'=*> annual cost of £10 4s; 2d, while in'the^A Australian Mutual Provident it' will cost ■- him £12 Is 8d (£l2 6s itjd it should have ■been). ■ ■■' '■■ •- ' ■' ' - ! - <-•*/> I reply that £500 (without profits) may 7-7 be assured in the Australian Mutual Prb "■' • ", yident at death by a person aged 30 fdr l an ! A annual payment of £9 8s 9d ! o'nlyV/-tlib') r i larger payment of- £l2. Os lOdAassuripg, ,hot only £500 at death, but imih^Hse bonus additions which, if allowed to accfuei '.'" would probably swell ljis policy to over ; 7l £1000 in less than 20 years. - ''-' ' Should a person so assured, 'however, prefer to. take the benefit of his bonuses; 4 in cash, it would, by a calculation 'based. ' upon the last division of profits, have the ■'<"•' following, effect: — In 5 years he, would;,/ pky.."s_3P, As 2d in premiums, and. couldthen draw a sum of £19 18s 9d ifor .hia share of the profits, by which means the - net cost : of his assurance would • be ' re- - - duced to £40 5s sd, or £8 Is Id per* 'annum.'' '" ■ '•'•''' '■" -''^

; If, however, he determined to allow HiE: vJ bonuses to accrue, some £70 or more would be added, to his policy, and in. the event' of his wishing at any future'timfe io? " draw the cash value 1 or have the rate of Ins further premiums reduced he could do bo, notwithstanding. his having previously elected to let his bonuses accrue. » .^ I have no fault 'to "find- with the , Govern?. f ment scheme, or with Mr Grub^for;ad|or, .eating "the office He represents,^ biit^at_£ >' personally quite satisfied that no office *i presents greater advantages at lower-oost; 1 than are afforded by the Australian Mututol . Rrovident Society. — I am, &c. , -: ! '''' 1 « F. Whitmore Isitt.-' , .. June 23, 1879. 7