been dependent upon him. For example, a
husband, whose income is entirely derived from
his own exertions, desires to make some pro-
vision for his wife and children in the event of
his dying before them. 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 chil-
dren, or as he may direct by his will. In a way
insurance is a kind of savings bank, but impos-
ing 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 com-
pulsory depositor. If a person put by £25 every
year 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 accumu-
late £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. It might be said that if the
person lived longer than the term of twenty-
eight years and went on saving the £25 every
year, he would in the end accumulate more than
£1,000. This, however, is met by insuring in
such manner that the insurance carries "profits,"