“And if you die,” was the shrewd retort, “your landlord will receive the benefit, and your wife and daughter be left penniless. Why not insure your life?”
The man rose, strode across the room, and drawing himself up as if to exhibit his huge strength, said, almost in the words of one of Sir Bulwer Lytton’s heroes[33], “Do I look like a man to die of consumption?”
The agent was not daunted—he persevered, explained his meaning, enlisted the kindly feelings of his host, persisted in asking him how much he would leave his family, and at last induced him to listen. They examined his accounts, and found that he could spare about 120l. a year. The village apothecary was almost immediately sent for, the life was accepted, and policies were granted for 3000l.
In less than nine months this man, so full of vigorous health, took cold, neglected the symptoms, and died, leaving only the amount for which he had assured his life to keep his family from want.
There is much in favour of life assurance in this little anecdote, and there is much too in favour of the proprietary system, for a man like this would not have risked his savings with a mutual insurance society.
The Edinburgh Life Assurance followed in 1823, having been originated by the legal bodies in Edinburgh at the same time, and very much upon the same principles, with the Law Life in London. The Scottish Union ensued in 1824, the Aberdeen in 1825, and the Scottish Amicable in 1826.
It is one advantage of all new life companies that they assist in forwarding a principle; and there is another feature in them. In most other speculative societies, their failure produces very painful results. A railway sees its capital spent, and is obliged to make farther calls upon its proprietors. An unsuccessful canal company has only the certainty of having fed and demoralised some thousands of stalwart navigators in exchange for the ruin of its shareholders, while the failure of a mine is the melancholy close of many a bright hope. But it is not so bad with a life assurance company. The insured—except in offices originated with a fraudulent design, such as the West Middlesex—has never yet been deceived by the failure of a policy. To take Scotland as an instance, many of the companies have not been able to maintain their ground; but in no one case has the policy-holder risked his premium or lost his assurance. Thus the Scottish Life, when unable to maintain itself, handed its business to the Mercantile, which then became responsible. When the Mercantile ceased to be an independent company, it transferred its policies to the “Life Association.” The “Scottish Masonic” and the “Bon Accord” business was taken up by the Northern. In no instance, therefore, has any legitimate company failed in its engagements. The public has never been scandalised with tales and traditions of wrong and ruin. Nor has the improvident man been strengthened in his improvidence, by being able to plead losses which others have sustained. The progress of the science in Scotland has been calm and equable. Throughout all her districts, its agents are spreading a knowledge of its benefits. There are enough and to spare of companies; and while giving the following list, it may be remarked, that all the offices which are noticed below as having transferred their business, were fairly and soundly originated. It is highly creditable to Scotland, that directly they found they were not successful, their business was at once handed over to other companies:—
| Scottish Widows’ Fund (mutual). This was the first life office in Scotland | 1815 |
| North British (mixed). Commenced fire in | 1809 |
| ” ” ” life in | 1823 |
| Edinburgh (mixed). Nine-tenths of the profits allotted to the policies | 1823 |
| Scottish Union (mixed), divides two-thirds of the nett profits every five years | 1824 |
| Standard Life (mixed). Commenced under the title of the Life Insurance Company of Scotland, and took its present name in 1832 | 1825 |
| Scottish Provincial (mixed). Commenced under the title of the Aberdeen Fire and Life Insurance Office, and took its present name in 1852. In 1840, policies with a right to share in the profits were first issued | 1825 |
| Scottish Amicable (mutual) | 1826 |
| Scottish Equitable (mutual) | 1831 |
| Caledonian (mixed). Originally fire | 1805 |
| ” ” Extended to life | 1833 |
| Five-sixths of the profits allotted to the policies. | |
| Northern (mixed). Commenced under the title of the North of Scotland, and took its present name in 1848. Divides 90 per cent. of its profits among the policy-holders | 1836 |
| Scottish Provident (mutual) | 1837 |
| City of Glasgow (mixed). Annual investigations and yearly bonuses. At the end of five years a policy-holder may live out of the limits of Europe without extra premium | 1838 |
| Life Association of Scotland (mixed). Commenced as the Edinburgh and Glasgow, and took its present name about 1841 | 1839 |
| English and Scottish Law Life (mixed) | 1839 |
| National (mixed). Commenced fire | 1841 |
| ” ” ” life | 1843 |
| Four-fifths of the profits allotted to the policies. |