Towns > Aberdeen > 1846-1848 - Post-office and Bon-accord directory > 1846-1847

The future sources of prolit, therefore, will always remain the same, viz.: —
1. Any difference betwixt the assumed and thereat rate of Interest, which at present
is from a Half to One per Cent. ;
2. The difference betwixt the actual and the anticipated Mortality ;
3. The profit upon lapsed and surrendered Policies ; and
4. The difference betwixt the per Centages added for Management and the Expenses
which may be incurred.
The Directors having had before them the different methods in use for apportioning
the free profit among the Policy holders, have resolved to adopt that plan which consti-
tutes the sum insured and the duration of the policy the elements on which the division
is made.
All the Assurances current upon the 30th of April last will have assigned to them a
bonus proportioned to the sum insured, and to the number of years which have elapsed
since the opening of the Policy. At next investigation, in 1851, the additions will be
made for the five years preceding, upon the sum contained in the policy, increased by the
bonus now declared. Each investigation, therefore, constitutes a distinct resting place
from which a new departure is taken, the bonus being regulated at each succeeding
period, not by the original sum insured, but upon that sum increased by the former
accumulations of profit.
It is almost unnecessary to state that this system is pursued by the Scottish Widows'
Fund, and recommended by the example of the Scottish Equitable, North British, and a
variety of other Offices. The Directors may be permitted to say, that although, in their
opinion, the plan is not altogether free from inequalities, yet, as a whole, it adjusts the
interests of the different classes of policy holders, with very considerable precision, and
they trust that it will be satisfactory to all concerned.
After allowing an ample Fund for contingencies, the Directors are enabled to propose
additions to all Policies opened on or before the 30th day of April, 1846, at the rate of
one and a fourth per Cent, per Annum upon the sums insured, for each Annual Payment
made ; and in relation to Policies where the payments are made by Single Premiums,
or by any mode of contribution other than Annual Payments, the same rate of additions
as if the Assurance had been granted upon Annual Premiums.
The following Table exhibits the additions which the Directors propose to make upon
Policies of £1000.
j
Per Cent-I
j Date of Policy,
| at or prior to
Sum in
Policy.
Bonus
Sum in Policy,
and Bonus Ad-
ditions.
age of Bo-I
nus on I
Sum In- 1
sured. j
1837— April 30
£1000
£125


£1125
12J
' 1S38 „ „
1000
112
10

1112 10
Hi
1S39 „ „
1000
100


1100
10
1 1840 „ „
1000
87
10

10S7 10
Si
! 1841 „ „
1000
75


1075
7J
! 1842 „ „
1000
62
10

1062 10
hi
184 3
1000
50


1050
5
1844 „ „
1000
37
10

1037 10
3J
1845 „ „
1000
25


1025
184G „ „
1000
12
10

1012 10
H 1
From the surplus on this Fund, the Bonus might have been extended to one and a
half per Cent. ; but, with the concurrence of a Committee of Participation Policy holders,
the Directors have, on the present occasion, limited the Bonus to one and a quarter
per Cent., with the view of equalizing the future Profits.
In comparing the additions declared by different Companies, it is obvious that the
amount of benefits to be received at death is no criterion of the superiority of one Office
over another, unless the Premiums required to secure such benefits are also compared ;
and the Directors, therefore, request the attention of the Policy holders to the following
Table, which exhibits the sums which the same Premium would insure with the North
of Scotland Company, and with two other Offices ; one, in point of business, stand-
ing at the head of the Mutual, and the other at the head of the Proprietary Compa-
nies. The amount of Bonus is also given upon the supposition that the Policies hare
'been in force for ten years.