Annuity

“ And I want to prove my friendship by settling an income upon you, in such a manner that you will not be dependent upon my forethought for the payment of that income. It will be paid to you as regularly as the quarter-day comes round. I am going to buy you an annuity, Lisa; that is to say, an income which will be paid to you till the end of your life; so that whether you make your fortune as a singer or not, you can never know extreme poverty. ”

“ I own it would be highly agreable to me, to have always a sum of money lying by me, besides my income; for I do assure you, Sir, that it is much more a scheme of economy than of expence. I should employ about seven or eight hundred of it to encrease my annuity during a year and a half and to enable me to travel agreably. ”

“ CHAP. VIII. BUBBLE ANNUITY COMPANIES—THEIR PROMISES—EFFECT ON THE PEOPLE.—DR. PRICE—HIS LIFE.—SIR JOHN ST. AUBYN.—THE YORKSHIRE SQUIRE—ASSURANCES ON HIS LIFE—HIS SUICIDE.
The bubbles which sprang up in the shape of annuity institutions were numerous. They were becoming objects of serious concern. They attracted the class which understood the least. They appealed to the finest sympathies of nature, and traded in the feelings they sought to excite. ”

“ We* are now in a position to show how the value of a life annuity is calculated. The annual payment of the annuity being 1, which is to be made at the end of each year through which the nominee shall live, the annuity consists of a payment of 1 at the end of one year if the nominee is then alive, of the same payment at the end of two years, at the end of three years, &c., under the same condition, and is therefore equal to the sum of a series of endowments. ”

“ Long and long had we spent the hundred pounds before the first instalment of the annuity was paid over; we thought it was never coming, and when it came it melted like snow in sunshine. One has no idea what it costs to furnish even a small house comfortably until one begins to do it, and a few doctor's bills play havoc with all one's calculations. And my husband could not stay at home with me—rather, he would not. I am sure there were dozens of situations that he might have had for the asking—a man so universally beloved and respected—but he would not ask. ”

“ An annuity, with the benefit of survivorship, or a loan raised on life annuities with the benefit of survivorship. Thus, an annuity is shared among a number, on the principle that the share of each, at his death, is enjoyed by the survivors, until at last the whole goes to the last survivor, or to the last two or three, according to the terms on which the money is advanced. ”

“ You can, by a slight increase on the payment for a deferred annuity, secure the return of the purchase-money to your representatives in the event of your death before the commencement of the annuity, or to yourself, should you for any reason wish to be out of the bargain.
A word of advice is given by a sensible writer to all who are life annuitants. ”

“ An annuity depending on the continuance of an assigned life or lives, is sometimes called a life annuity; but more commonly the simple term “annuity” is understood to mean a life annuity, unless the contrary is stated. A life annuity, to cease in any event after a certain term of years, is called a temporary annuity. The holder of an annuity is called an annuitant, and the person on whose life the annuity depends is called the nominee. ”

“ But annuities for uncertain periods, and particularly life annuities, are more frequent, and the value of the annuity is computed according to the probable duration of the life by which it is limited. Such annuities are often created by contract, whereby the Government or a private annuity office agrees, for a certain sum advanced by the purchaser, to pay a certain sum in yearly, quarterly, or other periodical payments to the person advancing the money, or to some other named by him, during the life of the annuitant. ”

“ The poor woman upon whom I desire to settle this annuity has seen so much trouble during her long life that her character has become embittered, and she feels no confidence in any one. Any promise would seem utterly valueless to her, if the promise was not based upon something tangible; so to convince the poor creature, I want to take her fifteen thousand francs in gold, which will represent very nearly the amount that will have to be expended for the annuity. ”

“ You owe more than your money will pay, and I am ready now to pay your annuity, and no more; and when you are ready to receive it, the agent will pay you.”
Red Iron. “We will receive our annuity, but we will sign no papers for anything else. The snow is on the ground, and we have been waiting a long time to get our money. We are poor; you have plenty. Your fires are warm. Your tepees keep out the cold. We have nothing to eat. We have been waiting a long time for our moneys. Our hunting-season is past. A great many of our people are sick, for being hungry. ”

“ If an annuity, instead of being payable at the end of each year, half-year, &, is payable in advance, it is called an annuity-due.
If an annuity is payable for a term of years independent of any contingency, it is called an annuity certain; if it is to continue for ever, it is called a perpetuity ”

“ The twelfth section of the above-named act having provided that, when any Indian tribe requests it, the annuity due to such tribe may be paid in goods, it will be the duty of the agent or sub-agent, while attending any annuity payment, to communicate this information to the Indians, and to inquire of them whether they desire their next annuity to be paid in money or in goods. ”

“ Hence the value of an annuity on a nominee of the age x, or the sum that will on the average be required to provide for such an annuity,
will be
7 ... .
which is at once seen to be the same as (1) formula under another shape.
If we suppose money to bear no interest, or make v= 1 in the formula for the value of an annuity, we shall obtain a quantity which is called the " expectation of life," or the " average duration of life," being the average number of years which persons of the given age will one with another live. ”

“ These he used as levers for the artful design of forming an annuity company—next to religion, annuity companies being the fashion—to be founded on a new principle for indigent persons and widows. This principle was, that it should be partly self-supporting and partly philanthropic, and that annuities bought by the poor should be aided by the charitable contributions of the rich. ”

“ I declare that upon the cesser of any annuity the annuity fund or so much (if any) thereof as the trustees or trustee shall not think it necessary to retain in order to answer and continuing annuity shall revert to and become the absolute property of the person (if any) who shall at the time be in possession or receipt of the rents and profits of my messuage buildings and hereditaments at Holmhurst
13. ”

“ It was computed that, according to the ordinary duration of human life, the annuities for the lives of the then holders would be equal to the annuity of two million eight hundred thousand pounds for forty-five years. The trustees were therefore empowered to sell from time to time such portions of this annuity as would provide the funds required for the payment of the dead weight, according to a computation made of the amount which would probably be due in each year. ”

“ An annuity is usually raised by the present payment of a certain sum as a consideration whereby the party making the payment, or some other person named by him, becomes entitled to an annuity, and the rules and principles by which this present value is to be computed have been the subjects of careful investigation. The present value of a perpetual annuity is evidently a sum of money that will yield an interest equal to the annuity, and payable at the same periods ”

“ I only say this by way of putting you in mind that I received my annuity at the beginning of the first half-year, and therefore when you hear of my death all your care on my account must be at an end, for I leave a sufficient sum to defray all possible expenses attending a funeral, &c.
But there is nothing grieves me more than that, at my leaving England, I gave myself, with all I was worth, to this branch of my family, believing them (from what my brother D. and their letters told me) as many noble-hearted and perfect beings as there were individuals. ”

“ Nay, a pension of that kind to be useful must be assured to you—something in the way of an annuity in the public funds, for instance—dependent on your own lives, and not upon any one else's frail thread of existence. ”

“ A simple annuity policy provides that in consideration of the payment at one time of a specified gross sum, the company will pay to the annuitant a stipulated sum annually, either for a stated term or during life; and a survivorship annuity policy, sometimes taken by one partner for another, by a debtor for a creditor, and otherwise for a business security, guarantees the payment of a stated sum to the person named by the person taking the policy during the period in which the nominee survives the insured. ”

“ The annuity of £150 for life, which Josiah Wedgwood, on his own and his brother Thomas’ behalf, offered to Coleridge in January, 1798. The letter expressly states that it is “an annuity for life of £150 to be regularly paid by us, no condition whatsoever being annexed to it.” “We mean,” he adds, “the annuity to be independent of everything but the wreck of our fortune.” ”

“ For the payment of interest on an annuity of one thousand dollars, secured to the Cherokees by the treaty of the twenty-fourth October, eighteen hundred and four, and which was not paid till the year eighteen hundred and twenty-five, twelve thousand six hundred dollars, which sum shall be paid in the same manner and in the same proportions to the Cherokees east and west of the Mississippi that the annuity itself is payable. ”

“ Permanent annuity under treaty of July, 1829.For payment, for the year one thousand eight hundred and thirty, of the permanent annuity provided for by the second article of the treaty concluded at Prairie du Chien, the twenty-ninth July, one thousand eight hundred and twenty-nine, with the Chippewa, Ottawa, and Pattawattamie Indians, sixteen thousand dollars. ”

“ He added the information that he did not mean to carry out 266his first intention of buying an annuity with his savings, but that he should go into partnership with his nephew, and that in the spring they should move into a larger house and increase their business. ”

“ We learn from De Wit s above-mentioned report, that the Governments of Holland and West Fries- land had granted annuities systematically for one hundred and fifty years before any correct estimate was formed of the value of a life annuity. The British Government has at various times granted life annuities, more especially on the Tontine principle, for the purpose of raising money when it was difficult to obtain the sums required for the public service by the ordinary methods. ”

“ They complained that this part of their reward had been industriously and artfully stigmatized in many states with the name of pension, although it was as reasonable that those who had lent their blood and services to the public should receive an annuity thereon, as those who had lent their money ”

“ That during those five years she might, without painful exertion, without any exertion that would not have been a pleasure, have earned enough to buy an annuity for life much larger than the precarious salary which she received at Court, is quite certain. ”

“ I will now do the same with the first.
A mathematical truth is true in its extreme cases. Lee's principle is that an annuity on a life is the annuity made certain for the term within which it is an even chance the life drops. ”

“ His wages, consequently, must yield, over and above the ordinary amount, an annuity sufficient to repay these sums, with the common rate of profit, within the number of years he can expect to live and to be in working condition. ”

“ Hodgson, “by granting annuities upon lives, has met with so great encouragement that there is no room to doubt it will be carried down to future times.” The following statements of this gentleman will be read with surprise by those who are acquainted with the chances of life as calculated at the present day. He estimated that “1000l. would purchase an annuity of 70l. per annum for a life of 29 years 10 months, when money is valued at 3 per cent. per annum; that the same sum will purchase the same annuity for a life of 23 years, when money is valued at 4 per cent. per annum ”

“ Independently of subscriptions of the whole trade, it would, during their working period of life, have been sufficient, with the enjoyment of greater health and comfort by every workman during the time of work, to have purchased him an annuity of 1l. ”

“ It is certainly beyond question that the 'mortality' aspect of these annuities-that is the assumption by the company of the entire risk of longevity-involves nothing other than classic insurance concepts and procedures, and I do not understand how that feature can be said to be 'not substantial,' determining as it does, apart from options, the commencement and duration of annuity payments to the policyholder. ”

“ To take an example, 5 per cent of a wage of $900 per annum, or $45, commencing with the age of 30 and continuing to 65, would produce an annuity of $450. Of course, the earlier in life the periodical payment begins, the smaller would be the annual amount required to be paid. The fact is that parents who have done well by their children seldom come to grief in their old age, except by special misfortune. ”