EQUITABLE LIFE ASSURANCE.
This Society has declared at the end of four years since the last distribution a full quinquennial bonus to whole life policies except that policies less than nine years in force will receive bonus for the number of years completed since December 31st, 1926. They will however, receive an increased rate conipared with that allotted to similar policies in 1926. The under- lying idea is to make tip to those who lost a year's bonus in (Continued on page 606.)
Financial Notes
(Continued from page 604.) consequence of the War. The rate of bonus on whole-life assurances ranges from £16 5s. per £1,000 per annum at the shortest durations to £30, £75 and £103 2s. 6d. per £1,000 for policies sixteen, forty and fifty-five years in force respectively. Endowment assurances have already been compensated for the War loss of a year's bonus provided they run till maturity : so they will receive four years' bonus and a special extra bonus. The Endowment assurance bonus is as follows : (1) £15 for each £1,000 of sum assured and existing bonus payable at death as well as on survival ; (2) £7 10s. for each £1,000 of sum assured : this part of the bonus to be payable only on survival ; (3) £1 5s. for each £1,000 of sum assured : this bonus is additional to the rates declared in 1926; it is payable at death as well as on survival.
It is interesting to notice that a new method of valuation is adopted and though a higher rate of interest is assumed the value of future bonus on existing business is brought into account, so that the reserve is increased. A comparison with the old valuation basis is given in the Actuary's Report.
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