Mr. Wright and
his eldest son, John, set up a business for calculating the value of
insurance policies, in which the logarithm machine helped them to obtain
a large income. With his first ten thousand dollars Mr. Wright purchased
a large house and a tract of land in Middlesex Fells, where his family
still resides.
In 1865 the office of Life Insurance Commissioner was filched from him by
a trade politician who knew as much of the subject as fresh college
graduates do of the practical affairs of life. Mr. Wright always
regretted this, for he felt that his work was not yet complete; and it is
a fact that American life insurance, with its good and bad features,
still remains almost exactly as he left it.
It was only after Elizur Wright had ceased to be Commissioner that he
discovered a serious error in the calculation of the companies, which may
be explained in the following manner:
In the beginning, nearly all the insurance policies were made payable at
death, with annual premiums; but the introduction of endowment policies,
payable at a certain age, effected a peculiar change in their affairs, of
which the managers of the companies were not sensible. Elizur Wright
perceived that there were two distinct elements in the endowment policies
which placed them at a disadvantage with ordinary life policies, and he
called this combination "savings-bank life insurance.
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