At the age of thirty he may, by paying $25 a year to an Insurance Office, secure at his death, whenever it may happen, $1,000, for the benefit of his wife or children, or as he may direct by his will. In a way insurance is a kind of savings bank, but imposing an obligation on the part of the depositor to save a certain sum every year. In the case of the bank, the savings are optional, and cease at death; whereas by insurance, the return of a large sum is the result of the death of the compulsory depositor. If a person put by $25 everyyear and invested that sum in the Government Funds at 2 1/2 per cent., or deposited the same sum annually in a bank, at the same rate of interest, it would take him twenty-eight years to accumulate $1,000, if he lived so long; whereas by an insurance on his life for the same amount, if he died a week after the first payment of $25 had been made, the $1,000 insured would be paid to his representatives.
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At the age of thirty he may...
@ 2006-09-19 – 19:53:26
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