On the rates of extra premium for foreign travelling and residence

Abstract

Few who are engaged in the practice of Life Assurance will deny that the prevailing restrictions imposed on, and charges made for foreign travelling and residence are unsatisfactory to all parties concerned. A considerable and increasing portion of the public whose pursuits or inclinations, especially in early life, take them to different parts of the world, are deterred from effecting life assurances on this account. The value of policies as securities is diminished owing to the uncertainty of the extra premiums which may at any time be imposed, and the risk of the assurances being forfeited altogether by causes over which mortgagees have no control. And actuaries feel that this subject is the opprobrium of their profession; for as in general no sufficient data exist whereby the risks incurred may be measured, the extra charges are therefore arbitrary and unscientific, for the most part little better than random guesses made on no intelligible principles. For these reasons it is hoped that any suggestions on the subject, however imperfect, may not be unacceptable, and may be the means of eliciting some useful discussion.