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31. Industrial Life Insurance

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Life Insurance, Annuities & Pensions
This chapter is in the book Life Insurance, Annuities & Pensions
CHAPTER THIRTY-ONE Industrial Life Insurance DEFINITION AND INTRODUCTION Industrial life insurance was originally developed in order that the lowest paid wage earner could make some provision for meeting the expenses which inevitably follow a death in the family. Broadly speak-ing, industrial life insurance is issued for small sums and paid for by weekly premiums collected at the homes of the policyholders. In the Ontario Insurance Act the definition of industrial life insurance is as follows; it is not uniform throughout the provinces. (l) The policy must not exceed $2,000 face value. (2) The policy must provide for payment of premiums fortnightly or more frequently, but, if premiums are usually collected at the home of the insured, the premium may be payable monthly. No further reference to industrial life insurance of any significance is made in the Ontario Act and apart from the calculation of policy-reserves it is not referred to in the Canadian federal insurance acts being included with other forms of life insurance. Different companies apply the label "Industrial Life Insurance" in different ways as a matter of administrative convenience. In Great Britain, where industrial life insurance originated, the com-panies transacting this form of business have given it the name "Home Service Life Insurance" to emphasize the service given by the collec-tion of premiums at the home of the insured and the personal service given by the agent on his weekly, fortnightly, or monthly rounds. A notable feature of industrial life insurance is the issue of a receipt book kept by the insured, or head of the family, in which a record of all premiums paid is kept. One receipt book usually covers all the industrial policies ofan insured or all the policies on members of the same family: father, mother, and children. The record of individual premium pay-
© 2019 University of Toronto Press, Toronto

CHAPTER THIRTY-ONE Industrial Life Insurance DEFINITION AND INTRODUCTION Industrial life insurance was originally developed in order that the lowest paid wage earner could make some provision for meeting the expenses which inevitably follow a death in the family. Broadly speak-ing, industrial life insurance is issued for small sums and paid for by weekly premiums collected at the homes of the policyholders. In the Ontario Insurance Act the definition of industrial life insurance is as follows; it is not uniform throughout the provinces. (l) The policy must not exceed $2,000 face value. (2) The policy must provide for payment of premiums fortnightly or more frequently, but, if premiums are usually collected at the home of the insured, the premium may be payable monthly. No further reference to industrial life insurance of any significance is made in the Ontario Act and apart from the calculation of policy-reserves it is not referred to in the Canadian federal insurance acts being included with other forms of life insurance. Different companies apply the label "Industrial Life Insurance" in different ways as a matter of administrative convenience. In Great Britain, where industrial life insurance originated, the com-panies transacting this form of business have given it the name "Home Service Life Insurance" to emphasize the service given by the collec-tion of premiums at the home of the insured and the personal service given by the agent on his weekly, fortnightly, or monthly rounds. A notable feature of industrial life insurance is the issue of a receipt book kept by the insured, or head of the family, in which a record of all premiums paid is kept. One receipt book usually covers all the industrial policies ofan insured or all the policies on members of the same family: father, mother, and children. The record of individual premium pay-
© 2019 University of Toronto Press, Toronto

Chapters in this book

  1. Frontmatter i
  2. Preface to the Third Edition v
  3. Contents vii
  4. Introduction 1
  5. 1. Some Early History and Background 3
  6. 2. Life Insurance in Canada 14
  7. 3. The Place of Life Insurance in a Modern Society 30
  8. 4. Age and Mortality 39
  9. 5. The Three Basic Plans: Term, Straight Life, and Endowment Insurance 54
  10. 6. The Calculation of Net Premiums 59
  11. 7. Policy-Reserves 71
  12. 8. Criticisms and Fallacies 85
  13. 9. Mutual and Stock Life Insurance Companies 97
  14. 10. Head Office and Sales Organization 102
  15. 11. Various Plans and Premium Practices 112
  16. 12. Term Riders and Special Plans 124
  17. 13. Annuities 132
  18. 14. Settlement Options 148
  19. 15. Participating Policies 154
  20. 16. Policy Provisions 175
  21. 17. Premiums, Expenses, and Non-Forfeiture Values 196
  22. 18. Taxation 221
  23. 19. Total Disability Benefits 233
  24. 20. Double Indemnity Accident Benefit 247
  25. 21. Mortality Trends and Tables 257
  26. 22. Selection of Risks: Objectives and Functions 270
  27. 23. Selection of Risks: The Medical Side 285
  28. 24. Selection of Risks: Other Aspects 303
  29. 25. Group Life Insurance 321
  30. 26. Pension Funds 342
  31. 27. Funding Methods of Pension Funds 359
  32. 28. Government Supervision and Company Statements 371
  33. 29. Investments of Life Insurance Companies 392
  34. 30. Inflation and Life Insurance 411
  35. 31. Industrial Life Insurance 430
  36. 32. Fraternal Life Insurance 444
  37. Index 455
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https://doi.org/10.3138/9781487582609-033

Chapters in this book

  1. Frontmatter i
  2. Preface to the Third Edition v
  3. Contents vii
  4. Introduction 1
  5. 1. Some Early History and Background 3
  6. 2. Life Insurance in Canada 14
  7. 3. The Place of Life Insurance in a Modern Society 30
  8. 4. Age and Mortality 39
  9. 5. The Three Basic Plans: Term, Straight Life, and Endowment Insurance 54
  10. 6. The Calculation of Net Premiums 59
  11. 7. Policy-Reserves 71
  12. 8. Criticisms and Fallacies 85
  13. 9. Mutual and Stock Life Insurance Companies 97
  14. 10. Head Office and Sales Organization 102
  15. 11. Various Plans and Premium Practices 112
  16. 12. Term Riders and Special Plans 124
  17. 13. Annuities 132
  18. 14. Settlement Options 148
  19. 15. Participating Policies 154
  20. 16. Policy Provisions 175
  21. 17. Premiums, Expenses, and Non-Forfeiture Values 196
  22. 18. Taxation 221
  23. 19. Total Disability Benefits 233
  24. 20. Double Indemnity Accident Benefit 247
  25. 21. Mortality Trends and Tables 257
  26. 22. Selection of Risks: Objectives and Functions 270
  27. 23. Selection of Risks: The Medical Side 285
  28. 24. Selection of Risks: Other Aspects 303
  29. 25. Group Life Insurance 321
  30. 26. Pension Funds 342
  31. 27. Funding Methods of Pension Funds 359
  32. 28. Government Supervision and Company Statements 371
  33. 29. Investments of Life Insurance Companies 392
  34. 30. Inflation and Life Insurance 411
  35. 31. Industrial Life Insurance 430
  36. 32. Fraternal Life Insurance 444
  37. Index 455
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