DOCTRINE

OP

LIFE-ANNUITIES

AND

ASSURANCES,

ANALYTICALLY INVESTIGATED AND EXPLAINED,

TOGETHER WITH SEVERAL USEFUL

TABLES

CONNECTED WITH THE SUBJECT:

AND A VARIETY OF

PRACTICAL RULES

FOR THE ILLUSTRATION OF THE SAME.

BY FRANCIS BAILY,

OF THE STOCK-EXCHANGE.

LONDON:

SOLD BY JOHN RICHARDSON, ROYAL-EXCHANGE.

Borves 11-21-35

3117 2

PREFACE.

In the year 1808, I published a treatise on the Doctrine of Interest and Annuities, wherein I entered into a full investigation of all the principles relative to that science; together with its application in the various questions arising from any commercial, political, or financial inquiries. In the preface to that work I signified my intention of prosecuting the subject still further, so as to take in the whole Doctrine of LifeAnnuities and Assurances: the present treatise, therefore, must be considered as a continuation of the work above alluded to; and will, I believe, contain all that is useful or interesting on the science. The motives, which induced me to submit the former work to the public, were there fully explained; and will equally, if not more forcibly, apply to the present treatise.

The importance of the subject, at the present day, cannot be doubted; since the greater part of the pro. perty of this kingdom is, in one shape or another, connected with this science. The present possessors

their ignorance or neglect of the true mathematical principles upon which they ought to proceed; and,: without an attention to which, no establishment of this kind can possibly flourish.

But, the most important branch of this science is that of Assurancès: which is still more extensive than either of those above mentioned. For, independent of the different classes of persons holding property: under the several tenures alluded to in the beginning of this preface, and whose incomes will consequently determine with their lives, there is an immense number of other persons, in the different departments of society, subject to the same contingency. Every man engaged in either of the three professions, whose emoluments arise from his own personal abilities and exertions,-every one pursuing a naval or military life, whose income will cease at his death,-every person engaged in manufactures, commerce, or any other employment, whose own immediate exertions are the support of the concern in which he is engaged, these and many others, too numerous here to insist on, will often be desirous of sacrificing some part of their present emoluments and profits, not only with a view to secure a suitable provision for their families at their decease, but likewise to render their own lives more easy and comfortable,

under the pleasing consolation that they have guarded against one of the great evils of a premature death.

Independent, however, of this general view of the subject, there are various other purposes for which Assurances are effected. Persons holding Leases on lives, and paying a fine on renewal, are oftentimes induced to insure a sum of money upon those lives, in order that they may be enabled to pay such fine when it becomes due. Some consider it a good method of securing a dubious or protracted debt, by assuring the life of the debtor. Others, again, may be entitled to an estate, or to a sum of money, at the end of a given term, or on the happening of a particular event, provided they be then alive to receive it: and, in order to secure such sum to their families, may be desirous of insuring their lives for such term, or against such contingency.

These, and a thousand other cases of daily occurrence, render this branch of the science interesting to every class of the community. Numerous Offices have lately sprung up, in the metropolis, for the purpose of granting Assurances on every possible contingency amongst lives in general; and it therefore becomes every one, engaged in the public business of life, to study this subject with attention.