Politics And Mysteries of Life Insurance

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Yet the risk of a loss on the life is very different at different ages, -vviule that of one on the house commoidy te^ mains the sanie. It is this paying for a variable risk wifli a constant premium, which is the peculiarity of life insuriuice and the source of all its mystery. The natural way would be to make the premium vary from year to year according to the variati6n of the -risk, but this variation is so peculiar, as we shall presently see, that this natural way is hardly practi'- cable.
By
... the Actuaries' Rate of Mortality, which does not differ materially from any other used for the purpose of insimng; life, the average probability of dying at any age is giveaii^m 10 to 100, beyond which there is assumed to be no diance of living worth taking intO' account.* If the question be, how to insure for life f 1,000 on a healtiiy person aged 32, let tis first try the natural method. He has, according to our as- sumed scale of mortality, 68 possible years to live. Let ub (see Plate I.) divide the line A B into 68 equal parts to repre- sent his future years of life.

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