10 general principles explained. New York," and the " New England Life Insur- ance Company of Boston." The next were the " State Mutual, of Worcester, Mass.," the " Mu- tual Benefit, of Newark," and the " New York Life Insurance Company," of New York City, established in 1845, since that date several other companies have been established in different sections of the country. GENERAL PRINCIPLES OF INSURANCE. Notwithstanding the natural weakness of the human frame, and the obvious insecurity and brevity of life, it is clear that, in the almost boundless resources of the mind of man, Provi- dence has furnished him with a variety of intel- lectual devices, which, in a very great degree, compensate for those imperfections. By the improvement of the mechanical arts, the feeble strength of individuals is increased to an almost unlimited extent; and the simplification of the sciences has produced a correspondent facility and power in their acquirement. Thus, much more is done and learned, with greater effect, in less time, and with far less labor, than couldgeneral principles explained. 11 formerly have been done or learned by any then-existing means; which economy of time and strength, as it were, lengthens life, by leav- ing space in it for other, or more profound pursuits. In like manner, the proverbial uncer- tainty of life, which appears to be altogether beyond the reach of human control, is not without a consolatory remedy, at least, inso- much as relates to the prevention of that distress which the destitution of those we leave behind us adds to death, or to the occurrence of a sud- den, heavy, or unexpected, calamity. It seems, therefore, highly probable that mankind were subjected to infirmity, shortness of life, and continual mutability, partly for the purpose of inducing the unceasing exertion of the counter- acting powers of ingenuity and prudence; in the diligent improvement of which consists one of the greatest moral benefits of the most high ly-cultivated conditions of society. It is not intended here to enter into any fur ther explanation of the advantages to be derived from this continual improvement, or to enforce any of the ordinary rules of prudence ; but only to exhibit the qualities and importance of that12 general principles explained. branch of it, which relates to the securing of a safe termination to an uncertain event, as far as that object is to be effected by the means of Life-Insurances. The nature and design of these contracts not being either generally 01 accurately understood, prevents their very great value being duly appreciated; but it will be found, when the principles upon which they are founded are rightly comprehended, that it is im- possible to entertain too high an estimation of their utility, or to conceive too wide an extent for their application. Their vital principle is future security; and their chief employment, at present, is to secure a provision for those who depend upon some particular individual for sup- port, whenever their protector shall be removed by death. For though, in a multitude of in- stances, the first burst of sorrow is far too deep and violent to admit of any other feeling than that of anguish, yet it cannot be doubted that even such distress is soon rendered more acute, when the survivors reflect that they are left in the world destitute as well as friendless; and calamity is always most afflicting, when the dis- general principles explained. 13 traction of grief is harassed by the anxieties and privations of want. As tne present treatise is intended to afford the fullest information upon the subject in the plainest terms, perhaps the first point to be made clear, is the way in which the issue of an event depending upon the inscrutable will of Providence, can be ascertained by a human be- ing, with any probability of being correct in the result. The chance of the duration of life, in single instances, is of very great uncertainty; but as all human knowledge is extremely lim- ited, when it attempts to institute a minuteness of inquiry, the calculation can only be made upon a very wide and general view of the oc- currence of such destruction, within a certain time and space. When this view is sufficiently extensive, even those events which are consid- ered and called purely accidental and fortuitous, are discovered to have certain relations and to be governed by certain laws. Thus, the num- ber of births, marriages, and deaths; the rela- tive proportions of the sexes, are, under similar circumstances, found to be nearly equal during equal periods of time : whence it is easy, from14 tables of mortality. observations made upon them, to determine the amount which an individual should pay for the securing of a certain sum to be paid to his sur- viving relatives at his death. TABLES OF MORTALITY. An estimate of the average duration of hu- man life, at all ages, is formed from observations among large masses of mankind during an ex- tended period of time; such observations con- stituting the materials, or data, necessary for constructing what are technically termed Ta- bles of Mortality. A right understanding of the construction and use of these tables consti- tutes a most important part of an accurate no- tion of tho nature and benefits of life-insurance ; a particular explanation of them shall, therefore, now be given, as naturally following the pre- ceding notices of the principles of chances, and as the first elementary point of information con- nected with the actual subject of these pages. The first table of mortality, which had any pretensions to accuracy and utility, was de- duced from a series of five annual tables ofTABLE OF MORTALITY. 15 births and deaths, with the ages and sexes dis- tinguished, kept for the years 1687, 1688, 1689, 1690, and 1691, by Dr. Neumann, in the city of Breslau, in Silesia. These, however, omitted to state the entire number of the population; but the place itself was considered at the time to afford a fair standard of ordinary mortality, on account of the uniformity in numbers and seclusion of the inhabitants, who, being chiefly engaged in the linen manufacture, were visited by few strangers, and remained resident on the same spot for one generation after another. From these registers, Dr. Edmund Halley con- structed the first tolerably correct table for as- certaining the true values of life-annuities, which had been previously calculated from hypotheti- cal and uncertain data. He assumed, from his examination, that the advances of birth and death are equal and uniform, which, however, was soon discovered to be erroneous; but his tables and rules will nevertheless be sufficient to make the reader acquainted with a few very simple calculations, illustrating the relative du- ration of life and its consequent value. Considerable improvement was made by sev-16 TABLE OF MORTALITY. eral parties, subsequent to this period, up to the time of the construction of the Northampton Tables, by Dr. Price, in 1769. About the year 1800, a set of Swedish Tables was published, founded on returns, both of the number living and of the deaths in Sweden and Finland for 20 years, ending with 1795. The Carlisle Table, which is the one now most in use, in England and this country, for the calculation of life-insurance premiums, was constructed by Mr. Joshua Milne, from obser- vations made by Dr. Heysham, at Carlisle, England, during a period of nine years, ending in 1787. The best actuaries in England and this coun- try, concur in opinion as to the decided superi- ority of the Carlisle over the Northampton tables of Mortality, and it is generally conceded that these tables more closely exhibit the state of longevity as it exists in the Northern and Eastern States than any of the others.OOQ0MOl6iihUKll-'OO01M0)S*.MK)l-OtD(Xl^OlnK«li'-O100l)')O0lit'Ut0l-Ot000'401Cn*MK)HO Age. Breslau, Dr. Halley, frMt«o>^^aooe-i-«teuifcin«o^»i(roooooMBau*ik«uo>oi^^05&ogoiOfew3ggg wt(i!Ottt»ioin>5io«isa)Sh-ajiM-»J*'00iwoffli«ioWh-S4.r-caio-ii-iio^ooa»ito*0'-oiutawwo goo oo>— *s 4^ .£. ^ ^ ^ » lSS2JSi»SH^U10CJlOWF-Cl^«OWO*.CD»SO)0*.^t30)i-OOMfc*5i>-WOOO Northamp- ton. Dr. Price. Carlisle, Dr. Hey- sham. Sweden, Dr. War- lientin. © © © © co o »-2'£00^Gbl>^Ut<9HO(2Q0^OU1^UtS OOOCOOOOCOOOOi--K!*.0!0 HHMiot5uu*wae>«)i>ioooi-Ki«*kiiia^-jmooo-Mu*ti(ji COOOOOOOOH*Wt5W**01-^WHH|9IOI3K!l9)9 MMtoiouuiU*.tn(noM^aj(Doci---BaikJ-wos^oojogp K ""i!? Sf ™ WClOUOtJtOClWOOWHCCOlWtDOWBaiWO^if'i-ffiOHiOCJWO^rf.HCO MUMMMHUMI fc-wl-tSUUIiUW(»-l(JlIBO(SWtllO100b- tittlC-lfcO- Ki^O'O-tgOtOOOi—JOlOCjS IOOOOOOOOOOM»UWa03^*o!hSS3fflSS!!icilO)S«0(OU-)OiS*W^IDr-IOUWKll5f-OtOaO-Oa Breslau, Dr. Halley. Northanip ton. Dr. Price. Carlisle. Dr. Hey- sham. Sweden, Dr. War- gentin. » 2 3,3 O Ml !s5 M — O re ° g CO g "S3 EL a o- ~» S ||S, sg i ft n > a f H O *S o H > era ,10 general principles explained. New York," and the " New England Life Insur- ance Company of Boston." The next were the " State Mutual, of Worcester, Mass.," the " Mu- tual Benefit, of Newark," and the " New York Life Insurance Company," of New York City, established in 1845, since that date several other companies have been established in different sections of the country. GENERAL PRINCIPLES OF INSURANCE. Notwithstanding the natural weakness of the human frame, and the obvious insecurity and brevity of life, it is clear that, in the almost boundless resources of the mind of man, Provi- dence has furnished him with a variety of intel- lectual devices, which, in a very great degree, compensate for those imperfections. By the improvement of the mechanical arts, the feeble strength of individuals is increased to an almost unlimited extent; and the simplification of the sciences has produced a correspondent facility and power in their acquirement. Thus, much more is done and learned, with greater effect, in less time, and with far less labor, than couldgeneral principles explained. 11 formerly have been done or learned by any then-existing means; which economy of time and strength, as it were, lengthens life, by leav- ing space in it for other, or more profound pursuits. In like manner, the proverbial uncer- tainty of life, which appears to be altogether beyond the reach of human control, is not without a consolatory remedy, at least, inso- much as relates to the prevention of that distress which the destitution of those we leave behind us adds to death, or to the occurrence of a sud- den, heavy, or unexpected, calamity. It seems, therefore, highly probable that mankind were subjected to infirmity, shortness of life, and continual mutability, partly for the purpose of inducing the unceasing exertion of the counter- acting powers of ingenuity and prudence; in the diligent improvement of which consists one of the greatest moral benefits of the most high ly-cultivated conditions of society. It is not intended here to enter into any fur ther explanation of the advantages to be derived from this continual improvement, or to enforce any of the ordinary rules of prudence ; but only to exhibit the qualities and importance of that12 general principles explained. branch of it, which relates to the securing of a safe termination to an uncertain event, as far as that object is to be effected by the means of Life-Insurances. The nature and design of these contracts not being either generally 01 accurately understood, prevents their very great value being duly appreciated; but it will be found, when the principles upon which they are founded are rightly comprehended, that it is im- possible to entertain too high an estimation of their utility, or to conceive too wide an extent for their application. Their vital principle is future security; and their chief employment, at present, is to secure a provision for those who depend upon some particular individual for sup- port, whenever their protector shall be removed by death. For though, in a multitude of in- stances, the first burst of sorrow is far too deep and violent to admit of any other feeling than that of anguish, yet it cannot be doubted that even such distress is soon rendered more acute, when the survivors reflect that they are left in the world destitute as well as friendless; and calamity is always most afflicting, when the dis- general principles explained. 13 traction of grief is harassed by the anxieties and privations of want. As tne present treatise is intended to afford the fullest information upon the subject in the plainest terms, perhaps the first point to be made clear, is the way in which the issue of an event depending upon the inscrutable will of Providence, can be ascertained by a human be- ing, with any probability of being correct in the result. The chance of the duration of life, in single instances, is of very great uncertainty; but as all human knowledge is extremely lim- ited, when it attempts to institute a minuteness of inquiry, the calculation can only be made upon a very wide and general view of the oc- currence of such destruction, within a certain time and space. When this view is sufficiently extensive, even those events which are consid- ered and called purely accidental and fortuitous, are discovered to have certain relations and to be governed by certain laws. Thus, the num- ber of births, marriages, and deaths; the rela- tive proportions of the sexes, are, under similar circumstances, found to be nearly equal during equal periods of time : whence it is easy, from14 tables of mortality. observations made upon them, to determine the amount which an individual should pay for the securing of a certain sum to be paid to his sur- viving relatives at his death. TABLES OF MORTALITY. An estimate of the average duration of hu- man life, at all ages, is formed from observations among large masses of mankind during an ex- tended period of time; such observations con- stituting the materials, or data, necessary for constructing what are technically termed Ta- bles of Mortality. A right understanding of the construction and use of these tables consti- tutes a most important part of an accurate no- tion of tho nature and benefits of life-insurance ; a particular explanation of them shall, therefore, now be given, as naturally following the pre- ceding notices of the principles of chances, and as the first elementary point of information con- nected with the actual subject of these pages. The first table of mortality, which had any pretensions to accuracy and utility, was de- duced from a series of five annual tables ofTABLE OF MORTALITY. 15 births and deaths, with the ages and sexes dis- tinguished, kept for the years 1687, 1688, 1689, 1690, and 1691, by Dr. Neumann, in the city of Breslau, in Silesia. These, however, omitted to state the entire number of the population; but the place itself was considered at the time to afford a fair standard of ordinary mortality, on account of the uniformity in numbers and seclusion of the inhabitants, who, being chiefly engaged in the linen manufacture, were visited by few strangers, and remained resident on the same spot for one generation after another. From these registers, Dr. Edmund Halley con- structed the first tolerably correct table for as- certaining the true values of life-annuities, which had been previously calculated from hypotheti- cal and uncertain data. He assumed, from his examination, that the advances of birth and death are equal and uniform, which, however, was soon discovered to be erroneous; but his tables and rules will nevertheless be sufficient to make the reader acquainted with a few very simple calculations, illustrating the relative du- ration of life and its consequent value. Considerable improvement was made by sev-16 TABLE OF MORTALITY. eral parties, subsequent to this period, up to the time of the construction of the Northampton Tables, by Dr. Price, in 1769. About the year 1800, a set of Swedish Tables was published, founded on returns, both of the number living and of the deaths in Sweden and Finland for 20 years, ending with 1795. The Carlisle Table, which is the one now most in use, in England and this country, for the calculation of life-insurance premiums, was constructed by Mr. Joshua Milne, from obser- vations made by Dr. Heysham, at Carlisle, England, during a period of nine years, ending in 1787. The best actuaries in England and this coun- try, concur in opinion as to the decided superi- ority of the Carlisle over the Northampton tables of Mortality, and it is generally conceded that these tables more closely exhibit the state of longevity as it exists in the Northern and Eastern States than any of the others.OOQ0MOl6iihUKll-'OO01M0)S*.MK)l-OtD(Xl^OlnK«li'-O100l)')O0lit'Ut0l-Ot000'401Cn*MK)HO Age. Breslau, Dr. Halley, frMt«o>^^aooe-i-«teuifcin«o^»i(roooooMBau*ik«uo>oi^^05&ogoiOfew3ggg wt(i!Ottt»ioin>5io«isa)Sh-ajiM-»J*'00iwoffli«ioWh-S4.r-caio-ii-iio^ooa»ito*0'-oiutawwo goo oo>— *s 4^ .£. ^ ^ ^ » lSS2JSi»SH^U10CJlOWF-Cl^«OWO*.CD»SO)0*.^t30)i-OOMfc*5i>-WOOO Northamp- ton. Dr. Price. Carlisle, Dr. Hey- sham. Sweden, Dr. War- lientin. © © © © co o »-2'£00^Gbl>^Ut<9HO(2Q0^OU1^UtS OOOCOOOOCOOOOi--K!*.0!0 HHMiot5uu*wae>«)i>ioooi-Ki«*kiiia^-jmooo-Mu*ti(ji COOOOOOOOH*Wt5W**01-^WHH|9IOI3K!l9)9 MMtoiouuiU*.tn(noM^aj(Doci---BaikJ-wos^oojogp K ""i!? Sf ™ WClOUOtJtOClWOOWHCCOlWtDOWBaiWO^if'i-ffiOHiOCJWO^rf.HCO MUMMMHUMI fc-wl-tSUUIiUW(»-l(JlIBO(SWtllO100b- tittlC-lfcO- Ki^O'O-tgOtOOOi—JOlOCjS IOOOOOOOOOOM»UWa03^*o!hSS3fflSS!!icilO)S«0(OU-)OiS*W^IDr-IOUWKll5f-OtOaO-Oa Breslau, Dr. Halley. Northanip ton. Dr. Price. Carlisle. Dr. Hey- sham. Sweden, Dr. War- gentin. » 2 3,3 O Ml !s5 M — O re ° g CO g "S3 EL a o- ~» S ||S, sg i ft n > a f H O *S o H > era ,18 TABLE OF MORTALITY. COMPARATIVE EXPECTATIONS OF LIFE. Showing the Expectation or Average duration of life, deduced from Original Tables, prepared under the superintendence of a committee of eminent Actuaries in England, and compared with the Carlisle, Equitable, and Northampton Tables. Male Female Lives— JAves— North- ■o Town, Town, Gene- Ad- Car- Equi- amp- © o5 Coun- Coun- ral justed lisle table ton. i try and try and Expe- Expe- Expe- Expe- Expe Irish Irish rience. rience. rience. rience. rience. o Expe- Expe- rience. rience. 20 39.84 35.86 40.97 41.49 41.46 41.06 33.43 21 39.29 36.01 40.45 40.79 40.75 40.33 32.90 22 38.70 36.20 39.92 40.09 40.04 39.60 32.39 23 37.98 35.41 39.18 39.39 39.31 38.88 31.88 24 37.41 34.81 38.54 38.68 38.59 38.16 31.36 23 36.63 34.41 37.84 37.98 37.86 37.44 30 85 26 35.88 33.79 37.13 37.27 37.14 36.73 30.33 27 35.23 33.14 36.42 36.56 36.41 36.02 29.82 28 34.63 33:07 35.76 35.86 35.69 35.33 29.30 29 33.96 32.61 35.06 35.15 35.00 34.65 28.79 30 33.17 31.73 34.25 34.43 34.34 33.98 28.27 31 32.44 31.04 33.50 33.72 33.68 33.30 27.76 32 31.73 30.51 32.75 33.01 33.03 32.64 27.24 33 30.92 29.86 31.98 32.30 32.36 31.98 26.72 34 30.21 29.60 31.27 31.58 31.68 31.32 26.20 35 29.52 29.07 30.55 30.87 31.00 30.66 25.68 36 28.87 28.88 29.90 30.15 30.32 30.01 25.16 37 28.15 28.30 29.20 29.44 29.64 29.35 24 64 38 27.49 27.62 28.51 28.72 28.96 28.70 24.12 39 26.81 27.00 27.79 28.00 28.28 . 28.05 23.60 40 26.06 26.36 27.07 27.28 27.61 27.40 23.08 41 25.42 25.84 26.41 26.56 26.97 26.74 22.56 42 2470 25.34 25.68 25.84 26.34 26.07 22.04 43 24.00 24.57 24.98 25.12 25.71 25.40 21.54 41 23.34 23.94 24.26 24.40 25.09 24.75 21.03 45 22.63 23.21 23.55 23.69 24.46 24.10 20.52 46 21.98 22.60 22.85 22.97 23.82 23.44 20 02 47 21.24 21.97 22.12 22.27 23.17 22.78 19.51 48 20.62 21.16 21.41 21.56 22.50 2212 19.00 49 20.08 20.69 20.79 20.87 21.81 21.47 18.49 1 Completed OO ~5 fcC0*0*-o tOCCMOU »Ut9MO tOOO-JOSCn ifcUtSHOl Age. ;&. .fa. cn Cn Cn OS OS OS *q CS CO OOtOtOO© H-«JOWU CO rf* Cn Cn CS CS -1 GO 00 tO Lj to — ji.b;© cn to k. bo co bo co to "co bo to to »&. to ife. to ►&. © as to ^iu©^j>&. Cn tOOSCOCOCO •J-lUtB*. h-COCOOO-4 -JOCStO-4 (CVtSOlH ^IOUUh Male Lives— Town, Coun-try and Irish Expe-rience. J*. [^ J* >&. Cn Cn Cn OS OS *^ cn as as <1 GO CO to © -1 bo cn ^-4 a* co Cn Cn Cn OS OS OS ^ K> UU *. rffc. Cn OS OS be co to as to bo en — CO © tO OS CO r—> CO ©tOOD^h- GO GO til CO W © OS tO OS »-• Gene-ral Expe-rience. J*, CnCnCnOSOS OS-3-3 po 00 to to to © © WKSfcOCOCO rfufkCnCSOS -^JCOOOtO© m S^S^Jfe 2£ i2°C5 j- cn © *• to *■ to cn b cs ~ l~i co to cn k> bo cn i- bo in ►-< oo toNsasi—oo oscs-io*. ©-loscs-i h-ui-ooM -i-itotscs ocsta©oo Ad-justed Expe-rience. cn en as as as co co *. AOioa^) ooootoS — S3 2S tS !fc 52 ° K r^ jr P1 b: ;} to -J to 4 io bo co bo co to in Vo bo en io to b co :-■ »— ©fcO©to*-* cotoascnoo ©cocn-3to ©h-h-torf* *ocn*-ooo Go-^aoto*- Car-lisle Expe-rience. 20.83 20.20 19.59 19.00 18.43 17.85 17.28 16.71 16.15 15.60 15.06 14.51 13.96 13.42 12.88 12.35 11.83 11.32 10 82 10.32 9.84 9.36 8 88 8.42 7.97 7.52 7.08 6.64 6.20 5.78 5.38 Equi-table Expe-rience. *&> encnenpsas ps fe-cncn asas-j-i-3 r1 HSi?1't;V to Jo ki U b b cn to '.&. bo co co k> ^-J Vo 'as :-■ b l-> en b cn © cn to en *- oo co ao 4* tsu»-to cn © as to co en h- go en >— co en co o co cs >«». N> © to North-amp-ton Expe-rience. /