The History of Life Insurance
The earliest form of life insurance stemmed from Greek and Roman religious societies. Group members would often give money to the family of someone who died within the group.
Another crude form of life insurance was the Tontine Annuity system, which became popular in France throughout the 17th century. Groups would invest money together and collect annual interest on that money until there was only one surviving member of the group.
Having outlasted his peers, this person would then be entitled to the original principal. The first life insurance company in North America was established in Philadelphia in 1959. It was named the Corporation for the Relief of Poor and Distressed Presbyterian Ministers and of the Poor and Distressed Widows and Children of Presbyterian Ministers.
Life Insurance Today
Today, there are almost as many different life insurance policies as there are reasons for buying them. The main categories of life insurance are whole and term life insurance. Those who own a whole life insurance policy are covered by that policy throughout their lives, as long as they continue to pay their premiums.
Term life insurance only covers a policyholder for a certain term such as 10, 20, or 30 years, for example. Once that term is expired, the policyholder is no longer covered. Many people with term life insurance choose to extend the term of their policy if it expires. These two types of life insurance come in many different flavors. Many policies are used today as tax-free investment tools that bear interest to their policyholders.
Shopping for Life Insurance? Look Online
Life insurance can get pretty complicated, especially if it is tied to other types of investments. Luckily, most of the information you need to know about life insurance is within a click of a mouse button.
Life insurance companies, hoping to earn your business, have set up interactive websites that provide free rate quotes, tables, and other insurance information. If you're in the market for some life insurance, start your search online. Chances are, you'll find most of the information you need to make an informed purchase.