Top Tips To Create A Persuasive Sales Letter

 Life Insurance Facts

Life insurance is a contract between an individual or family and an insurance company. The company agrees to pay the insured person or their beneficiary a set amount of money, typically upon the death of the insured, in exchange for payment of periodic premiums by the insured. Once the term of the agreement has expired, the insured person or their beneficiary is freed from any further obligations to pay premiums.

Life insurance can be useful for a variety of reasons. It not only provides financial protection in case of death, but also allows a person access to income when they are no longer able to work. There are several types of life insurance, including single premium immediate term coverage and group policy life insurance which provides coverage for a family or group. Personal lines (such as whole and permanent disability) and universal life are two types that can be issued in the United States through insurance carriers.

The first life insurance policies were issued in England in 1567, but the concept of insuring one's life is much older. The first policy was taken out in 1583 by an English merchant named John Langley, who insured his life for the then-enormous sum of £1,000.

It is likely that prehistoric people took out fire insurance on their houses and possessions. The money would be used to replace their house or items from their house if it was destroyed. Today there are companies that will insure such things as jewelry and furniture, and there has been a great increase in this type of coverage since World War II.

Insurance companies themselves evolved from a number of state agencies that provided money to pay for disaster relief in the 17th century. One of the first was the office of fire insurance in London, established by order of Charles II on December 21, 1666. The office became known as the Office of Stucody for Short Title Insurance, and later "Office of Civil Defense." In 1824 it became an independent government department, the Board of Fire Assurance Insurance Office. 

Even earlier than this, a few hundred years ago people had to take out policies from private individuals if they wanted protection against fire or theft. This was considered a "lucky omen," as it implied that the person was destined to prosper and do well in life.

The earliest forms of life insurance were simple contracts, drafted by the common law, which guaranteed the insured that he or she would have a certain number of years of life. The amount of insurance would depend on location, but typically would be between 10 and 20 pounds. The premium was often paid up front and in cash; or in some cases it was paid on a regular basis over time (10 pounds annually, for example). This type of insurance was common in the 19th century, and was known as "hutch and toil". 

However, as the industrial age dawned, more sophisticated contracts were developed. The first such contract was the "life annuity" before 1730. An early example of this is found in the will of William Thornhill, a puritan merchant who died in 1676. He left an annuity for his son Edward from his estate in London that would continue to be paid until Edward's death. This type of policy was only valid if an annuitant died after 18 years old and less than 80 years old.

The first person to introduce the concept of an insurance company was John Castaing, who published a book titled "Proposals and Reasons for Constituting a Company of Insurers" in London in 1706. He noted that many were willing to take greater risks if they could obtain easier and cheaper insurance; he proposed pooling these risks into one large insurance fund. His idea became reality in 1706 when he established the Society for Equitable Assurances on Lives and Survivorship (SEALS). The concept was so popular that many other similar societies were created at the time. Eventually, however, SEALS entered into public controversy when it tried to collect from families who had lost members. As a result, it was dissolved in 1775.

In the United States, the first life insurance company was started in Philadelphia on March 1, 1792 by William Procter and William Fisher. They called their organization the Society for Establishing Useful Manufactures (SEUM). This business later became The Equitable Life Insurance Company. It is one of the oldest life insurance companies in existence today.

During this time, there were a few other companies set up; however these were short lived and funded by only their sponsors. John Woodman founded "The Joint Stock Life Insurance Company of Vermont" in 1810; but it lasted only two years. Another early company was the "Manchester Permanent Benefit Life Insurance Society".

In 1824, the Office of Civil Defence (ODC) was established in England with its main function being to administer policies written on individuals up to the age of 21. 

In the United States, there are several companies that have been around for a long time. The first one founded was The Mutual Assurance Company in America in 1849. Others that have been created and still exist today include Equitable Life, Prudential, MetLife, and Mercury General Corporation (all from New York). The first life insurance policies were written on children; however these companies eventually allowed them to be adults as well. The first life insurance policy for adults in the United States was written by Thomas W. Lyons in New York City on January 7, 1821.

In Britain, the concept of "industrial assurance" (essentially political-risk insurance) was championed by William Pare and Mathias Kaus. They organized the first company of this type, The Liverpool and London & Globe Insurance Company, in 1830. It operated for 90 years before being sold to another company in 1910. It remained a leading underwriter until it was dissolved in 1970. In part due to Pare's lobbying, Britain passed a statute that allowed 'industrial assurance' companies to be formed under a legal framework which remains in force today (see Friendly society).

The first life insurance company in the United States was The Equitable Life Assurance Society of the United States, founded in 1849. The original company took on government bonds as the main asset, which created a significant liquidity risk in the event of national default. This led to a crisis in 1873 that was resolved by splitting off the government bond business and forming The Equitable Life Assurance Company of New York, which ran for over 100 years before being sold off to Prudential Financial.

Conclusion

The history of life insurance goes back thousands of years, from ancient times to the present day. However, the concept of life insurance is relatively new. The first life insurance policy was written in 1812 and in the U.S. big business only began around 1850 (also known as "industrial assurance"). The first policies written were for children and this has continued to be the case up until now. 

Life insurance was built on the idea that "insurance" is a social contract between two parties: a person who makes a promise to pay money for something they may not need or may not get, and an insurer who agrees to take financial risk for a benefit they may need but may not receive.