SECURITY IN LIFE ASSURANCE.

New Zealand Herald, Volume XVII, Issue 5758, 1 May 1880, Page 5

SECURITY IN LIFE ASSURANCE.

[FKOJI THE " LYTTELTON TIMES."] It is a remarkable fact of the present day that the business of Life Assurance is rapidly increasing in these colonies, and nowhere is that increase more evident than in New Zealand. This is an eminently healthy sign of the growth of provident habits and of care for the future welfare of widows and orphans on the part of those whose first duty it is to make provision for families, who, but for such provision, would suffer the pangs of poverty when the was taken away. To the establishment of Sir Julius Voxel's scheme of Government Life Insurance in this colony is, without doubt, due a large amount of that increase which marks such improvement in that spirit of providence for the future which true statesmen, cannot fail to recognise and foster. By that scheme the public attention became closely directed all over the colony to the great social question of Life Insurance, and the attention of other kindred institutions from Australia being directed to the results achieved under the Government scheme, branches of these institutions have been established in this colony and sedulously worked, and we do not doubt there will be work for all, for, once the public mind is fairly imbued with the necessity of fathers of families taking proper advantage of this means of benefit for those thty leave behind them, aud the subject i 3 fairly presented to, and canvassed in the family circle, the practice of life assurance must in time become the rule, and not the exception. All over the world the newspaper press is giving its aid in promoting this system of family provision, and the financial and commercial journals especially are not only urging the general observance of the practice, but are fixing a watchful eye on the stability and /inaucial position of the various companies. The subjoined extracts from well known insurance journals, published in America and England, seem so cogent as to merit a wide publicity. The Insurance. Diary, speaking of the great advance in the business of insurance, says :— " Life insurance is the favourite branch. It is the grand agency by which communities can be directly benefited. The lives of every man, woman, and child can be assured. The amount of misery which every day oocurs by neglect of this duty is very great ; aud yet this branch of the business is still the most neglected one. Of the whole population of this country, at least ten millious should be assured. The amount of assurances iu force exceeds £400,000,000, but this 13 held by less than 1,000,000 of persons—a low proportion of such a large and wealthy population. The amount paid annually to widows and orphans on the death of policy-holders by assurance ofiice3, is about £10,000,000." On the ethics of the subject, the Finance Chronicle observes:—"Life insurance contributes effectually to make life itself longer, society happier, the aggregate prosperity of the community greater, and, just so far as it shall extend, while still conducted on sound principles, it will multiply the kindly bonds that connect men, while encouraging economy, invigorating enterprise, justifying hope in each individual, aud shedding the lit;ht of a more serene happiness into many households." Again, it is remarked by the Insurance Age:—"Success in life insurance does not consist in an enormous array of premiums received, nor an imposing exhibit of the amount insured. It does not consist in rolling up assets more rapidly than our neighbours, or in numbering policies in force by thousands, or tens of thousands. It consists in furnishing absolute security to the insured. This can only be done by a careful selection of lives." "Absolute security" and "careful selection of lives," should be the watchword of those who apply for life insurance, for the failure of many Life Assurance Companies in Europe and America, who neglected these essentials of success aud prosperity (in some cases criminally - neglected them), has brought disaster over many a bereaved home and family. The public of New Zealand should be especially thankful that the Legislature of this Colony has established an institution where "absolute security 7 "' to the policy-holder is provided by tho law of the land, and where, as wo learn from the best sources, " careful selection" is the rule which invariably guides its management. Other Colonial Governments are considering the propriety of establishing a Government life Insurance system, notably those of the Dominion of Canada and the Colony of Victoria. Tho first-named Government have had the subject bofore them for some coneiderable time ; the latter only of recent date directed publio attention to the subject, which no doubt will - have the advantage of being canvassed in the Bister .colonies.