SURRENDERS.
If from any cause it is desired to give up a
policy and discontinue paying any more pre-
miums, the offices will pay to the insured what
is called the surrender value of the policy, at the
same time cancelling it and all its conditions.
This surrender value may be roughly calculated
at about 40 per cent. of the premiums paid, in a
case were bonuses have been added to a policy,
and about 33 per cent. of the premiums paid in
a case where the bonuses have not been so
applied. For example: a person has paid £25
a year in premiums for ten years — in all £250 –
on a policy for £1,000, to which has been added
£60 in the shape of bonuses. The surrender
value in such a case would be £100. But if the
insured had taken his bonuses in cash, or his
policy did not carry profits, then the surrender
value would be £82 10s. only.
Any insurance office will lend the insured, on
the security of the policy, an amount of money
not exceeding the surrender value, and the rate
of interest is usually moderate.
In this case there would be no necessity to
abandon the policy, which would be kept alive
and increased by added bonuses as before.
FIRE INSURANCE.
This is a distinct branch of insurance business,
the object being to compensate a person in case
of pecuniary loss through the accidental burning
of his property. By paying annually a com-
paratively small amount in the shape of pre-
mium, a person may insure that in case of the
destruction by fire of such of his goods as may
be specified in a fire policy, issued by the Insur-
ance Company, he will be recouped their value.
Nearly all the Fire Insurance offices are agreed
in charging a certain rate of premium, which is
called the tariff rate. For dwelling-houses built
of brick or stone with slate or tile roof, the rate
is only 1s. 6d. for every £100. For more hazard-
ous buildings such as thatched houses, ware-
houses, inns, shops, &c., the rates are higher,
according to the nature of the risk. Household
furniture and the other contents of a brick or
stone house can be insured at various rates, or
they may be included in one insurance with the
house, when the rate would be 2s. per cent. for
the whole.

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