The History Of Life Insurance

Life insurance is a staple of today’s financial market and provides millions – if not billions – of people around the world with peace of mind and financial support for them and their families. Believe it or not, life insurance began in ancient Rome where people could sign up to ”burial clubs”. As the name suggests, becoming part of the club covered the cost of members’ burial and helped support their families financially in the wake of death. Modern life insurance however, began in the 1600s and covered traders, ship owners and merchants.

America also has a long history of life insurance and shortly before the Declaration of Independence the creation of life insurance policies began. Quickly, different groups founded their own unique brand of life insurance and many religious groups quickly set up schemes to protect bereaved families. Presbyterian groups in Philadelphia and New York, for example, created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers. Between the years 1787 to 1837 over twenty four different life insurance providers were founded although less than six are still operational today.

During the 1800s and prior to the American Civil War, life insurance companies in America would happily insure the lives of slaves for their owners. When slavery in America was abolished and slaves were declared free, such life insurance policies were abolished although many insurance providers had ceased providing slaverholder insurance over a decade prior to this.

Today, life insurance has become a staple of our personal finances and provides peace of mind and financial security for individuals and their loved ones in the the event of death. Recent trends have seen a sharp rise in the number of people utilising the internet to seek out their policies. Many people choose to compare life insurance packages before they sign up by using price comparison sites, whose popularity has grown by over 50% year on year in recent times.

What’s certain is life insurance will continue to reduce risk and financial hardship across the globe for those willing to invest in such a policy.

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