204 BUSINESS OF LIFE INSURANCE

Survivorship annuities, already described in connection with continuous instalment life insurance. These are usually paid for by annual premiums during the life insured, and such policies are issued both with return of premiums if the beneficiary dies first or without return, the premium for the former being the larger, of course.

Increasing life annuities, i. e., starting at a given payment and the payment increasing each year the annuitant survives, usually at a fixed amount per annum or by arithmetical progression. This form has usually been utilised only in connection with life insurance policies as follows : An annual cash payment to the policy-holder equal to 3 per cent. upon all premiums previously paid. Suppose the premium is $100 per annum, this would call for a payment of $3.00 the first year, $6.00 the second, etc., and after thirty-three years these payments would exceed the annual premium and yield the insured an income each year of $2.00 the thirty-fourth year, $5.00 the thirty-fifth, etc.

The following forms of life insurance or annuities have also been offered, viz.:

Life and annuity, giving life insurance to age 70 and premiums ceasing at age 70, when an option is given to take $1,000 paid-up insurance, $100 life annuity, or $500 paid-up insurance and $50 life annuity. The point is that at age 70 a