LIFE INSURANCE ON BUSINESS PRINCIPLES. [To THE EDITOR OF THE
" SPECTATOR."] SIR,—Your instructive article on "The Progress of Life In- surance" contains this remark :—" We are not sure whether an office might not succeed which, in case of default, returned all premiums, deducting only a fine."
The writer of the article omits to state that there is, at least, one office which has made an honest attempt to carry out the principle which he advocates, though not exactly in the way which he suggests. The Positive Life Assurance Company, by dividing the entire amount to be paid into a certain fixed number of annual payments, and making each of these payments abso- lutely insure for its own proportion of the gross amount, even if no farther annual payment is made, renders the position of the insurer absolutely secure.
The great advantages offered by this plan, as well as the security given by the investment of a large proportion of the premiums in Government Bonds, brought down upon the Posi- tive the enmity of the older offices, and subjected it to an amount of misrepresentation which at one time bid fair to wreck the system. Happily, the Company has been able, though not with- out difficulty, to pass safely through this terrible crisis; and this year, for the first time, I, believe, the ensurers receive a bonus.
I have no interest whatever in the Positive Company, beyond holding a policy for a small amount ; but it has always appeared to me a pity that the great advantages which this office presents are not more generally recognised.—I am, Sir, &c., J. W.
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