BONUSES.

It has been mentioned in a previous page that
insurance has the advantage over the savings
bank, no matter how long a person may live,
and this is brought about by the operation of
Bonuses, so called. These are the whole pro-
fits in the case of a Mutual Company, and the
larger proportion of the profits in the case of
a Joint-Stock Company, which are distributed
amongst the policy holders. At the end of every
five years, in some cases seven, a valuation is
made of all the property of the Company and on
the other hand is ascertained what the company
is liable for, present and prospective. The
difference between the two constitutes the sur-
plus or profits, assuming of course that the assets
preponderate. This seems at first sight to be
a very simple process, but in reality the most
intricate calculations are necessary to arrive at
mathematical accuracy; but this needs no further
notice here. The bonus being declared, it may
be dealt with in various ways.

1. -- It may be added to the amount insured,
and so payable at death.
2. -- It may be commuted for an immediate
payment in cash. (In this case the amount
will, of course, be less than in No. 1.)