LIFE ASSURANCE.
TO THE EDITOB OF THE INDEPENDENT. Sic, — The " Post" and " Assurer" are clearly interested men. Permit an outsider to point out what is tho weak parb of tho "Post's" position. His calculation rests completely on two absolutely unwarranted assumptions, viz, that each man will live his" expectation," and that an uniform rate of 5 per cent compound interest will bo recoived on large sums for tho next 38 years. This calculation is a mere dealing with stated sums for given periods, and at specified rates, and is altogether inapplicable to life assurance, inasmuch as it takes no notice of tho element of risk. If each assurer is to get what tho " Post" propounds, how does tho " Post" propose to meet the claims of thoso who do not live their " expeclion ?" From what sourco does he, undor his method, get tho money to pay claims of those who die say a month or a year after insuriug ? He ignores this. If ho desires to know what average proportion of mankind live the " expectation," I might enlighten him, and this fact would alono convince him that his articles have not been woll founded. Every true colonist is indirectly interested in the extension of tho Government life assurance department. — I am, &c, Fair Play/.-
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Bibliographic details
Wellington Independent, Volume XXVII, Issue 3380, 25 December 1871, Page 3
Word Count
213
LIFE ASSURANCE.
Wellington Independent, Volume XXVII, Issue 3380, 25 December 1871, Page 3
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