CHAPTER XX

THE EVOLUTION OF VARIETIES OF LIFE INSURANCE POLICIES

IN the mind of Thomas Simpson, the English mathematician who brought about the organisation of the first life insurance company on the level premium plan, practically but one sort of a life insurance policy was present, viz., the policy for the whole period of life, paid for by premiums payable throughout life.

Of course, short term insurance was already in existence. In order to meet that demand, his company granted it when called for. But the whole life policy was the life insurance policy; and, except as the sale of other forms has been especially fostered in one way or another and as the field of insurance for protection only has been turned over to assessment societies and fraternities, it yet remains the favourite form.

In computing the annual premium Mr. Simpson arrived at the single premium first, and therefore the idea of permitting an insurance for the whole period of life to be paid for by one

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