ELEMENTS OF LIFE INSURANCE.

INSURANCE IN GENERAL.

Insurance is the equalization of fortune. The degree to which it accomplishes that end is of coarse limited by its sufficiency and the contingencies to which it applies. But, by indemnifying one set of men for their losses through misfortune out of funds contributed by themselves and others who, like them, in advance, seemed subject to the danger of a like misfortune, it tends to spread the loss over all and thus to equalize their fortunes in the one regard.

By means of insurance, a large number of men arrange to lose small sums, the premiums which they pal. Their reward is that such of them as would otherwise lose great sums through a particular sort of mischance shall be indemnified in whole or in part, as may be the agreement. Thus all have the benefits of the protection, though to only a part do the misfortunes actually- come which are indemnified. The first known form of insurance, therefore, was the giving of a bond for an-other, a form not even now always recognized to be insurance at all.

Insurance is the alliance of prudent men against misfortune. It is a peculiarly significant, important and even vital invention of civilization and a practical appli-

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