how did life insurance start?
if you had lived in ancient rome, you would have worried about the cost of your funeral. the cost of his funeral procession could have included several paid performers. his family might have been expected to pay for a band of musicians, actors, singers, and even clowns.
There were also the actual burial expenses. the cemetery and the casket were just two of the necessary expenses. if he was cremated, there was the cost of building the fire plus the spices and perfumes used in the ceremony. As you can see, a funeral could be quite expensive. To cover the costs of an ancient Roman funeral, people began to form funeral societies or clubs.
Reading: When was life insurance invented
each of the club members would regularly contribute to the club fund which would pay for the future cost of burying a fellow club member. In this way, a sick or elderly club member could be sure that his family would not have to pay for an expensive funeral when he died.
When a member died, the society appointed a committee to organize and pay for funeral arrangements. Today, we recognize those ancient Roman burial club funds as one of the earliest known types of life insurance.
who owned the first policy?
It’s hard to imagine modern life without insurance policies. after all, the us it alone has over 1,000 insurance companies. those companies write policies that together are worth billions of dollars.
but humans were around long before anyone recorded the first written insurance policy. It happened in London, England in the 16th century. A man named William Gibbon, who made a living preserving meat and fish, purchased a life insurance policy. his friend, richard martin, was the beneficiary.
how did life insurance start in the united states?
Life insurance started in the US. uu. In the 1700s in Pennsylvania, a group of officials of the Presbyterian faith created a fund to protect Presbyterian ministers and their families. the corporation for the relief of poor and distressed widows and children of Presbyterian ministers was called. With a name like that, you can understand why it changed to something much simpler: Presbyterian Ministers Fund for Life Insurance.
business grew slowly. it was difficult to convince people that this new life insurance idea was worth the investment. furthermore, some people thought it was in poor taste to put a dollar value on human life. Opinions began to change after people saw how widows and orphans benefited from insurance policies: they provided families with financial help when they needed it most.
Other life insurance companies followed. In the early 1800s, there were successful life insurance companies not only in Pennsylvania but also in New York, Maryland, and Massachusetts. it is estimated that in the 1830s, American life insurance companies issued policies totaling around $600,000. by 1850, that amount was nearly $100 million.
when was the modern united states invented? does life insurance start?
Things changed in 1840 when New York State passed a law making it legal for a woman to purchase a life insurance policy for her husband herself. the same law also gave the widow a significant degree of protection from creditors. Life insurance in the United States soon experienced rapid growth as other states and insurance companies began to follow New York’s lead.
Fortunately, today there are adequate life insurance policies for the protection of all family members. help protect those who are important to you. Contact Trustage® today to learn more about modern life insurance. our experienced agents can help you and your family face the future with confidence.