Life Assurance Combines Indemnity With Investment.

The conception of a life insurance policy as a contract which combines indemnity with investment, seems to reach its highest development when the premiums are payable only for a limited term of years, say up to the same age as we have already mentioned—sixty-five, when the need for indemnity may generally be expected to cease, that is to say, when the earnings of the assured will generally be reduced, or altogether cease; when those formerly dependent upon him will be earning their own living, or be other-wise provided for, or have died off. When, for these reasons, the need of an indemnity is no longer felt, then, according to the view I have been endeavouring to lay before you, life assurance ceases to be a desirable investment. Consistently with the condition that the payment of premiums shall cease at the age of sixty-five, the policy may either be an endowment assurance, payable at sixty-five or previous death, or a whole-life policy, subject to premiums that cease at that age; the insured selecting the one form of policy if he anticipates that he will not be able in other ways to accumulate a sufficient provision for his old age, and the other form if he feels sure he can provide for himself, page 8 and only wishes to make a certain provision for those who come after him.