Cost Of Life Insurance In

The Tropics

Letter to the Editor.

IT has been brought to readers’ notice that Life Assurance is a “Fortune for the Future”. Without wishing to detract from the truth of such statement, but being a matter of public interest, I would like to com ment on that point and illustrate a personal case of assurance on the life of a person resident in tropical zones.

In or about the year 1916, I effected a life assurance policy for £2OO, and for the past 22 years have paid a half yearly premium of £6/10/4. In all,

the sum of £286/14/8 has been paid by way of premiums.

On the policy falling due this year the amount received by me was £287/10/-, being the amount of the benefit and bonuses.

It is thus seen that the investment, by effecting an assurance policy, was a poor one, only returning 15/4 more than the actual amount paid in premiums over an extended period of 22 years.

In fairness to the Society, it is pointed out, and, of course, ap preciated, that £94 in additional pre miums over and above the ordinary rate were paid by me, owing to being resident in tropical zones during this

period, and that the risk carried by the Society in the event of my death would be greater But even taking these facts into consideration, the policy as an investment shows a very small return.

Under ordinary circumstances of a person resident in temperate zones, such policy would have a return of approximately £95 in bonuses, and the fact that the assured resides within a tropical zone hardly war rants the loading of additional pre miums to diminish the return to so small an amount.

I am, etc.,

Percy J. Wood.

Samarai, Papua, June 25, 1938.