History of Life Insurance
Life Insurance is a contract between an individual and an insurance company that states that the company will provide financial assistance to the beneficiary of the one purchased the insurance. Life Insurance is very popular nowadays despite there is a presence of scams. It is a human instinct to protect himself and his family from any harm. But where did life insurance come from? Who made the concept and which country had it first? You might already have purchased the life insurance that you wanted but it is pretty interesting to know where it came from.
In China about 5000 years ago, insurance was became the solution to the piracy problem. Piracy that time was very rampant and as a preventive measure, a certain ships would bring a part of another’s ship’s cargo load so that when a certain ship was conquered not all of the loads will be taken.
In Babylonia about 4,500 years ago, traders on a caravan used to have loans that later will be paid when the goods reached the end of the caravan safely. During 2100 BC, this was approved legally through the Code of Hammurabi. This established the marine insurance concept. This contract includes three fundamentals: a loan of the freight or cargo; an interest rate and charging if there is a risk of loss. This insurance if for the ship owners and the lenders were the insurance agents.
In Rome, there was presence of burial societies that handles the funeral expenses of its members as well as assist survivors financially. During 450 AD in Rome, these societies were abolished but it came again later during the Middle Age. But this time, life insurance also covers fire, disability, flood, imprisonment, theft and death.
However, during the feudalistic period, insurance forms disappeared because of the lesser long distance and travel trade. Nevertheless, during 14th century to 16th century as commerce and transportation boomed once again, insurance reemerged.
And just like in old Rome, during the Buddhist period in India, burial clubs were established to assist families construct houses, and to protect the widows and children.
Today, Life insurance is far better and more beneficial compared to how it started in China, India and Rome. Insurance companies are still thinking of ways to protect every family from any risks that may arise. To get the best life insurance, get free insurance quotes from the nearest insurance companies at your place. Protect your family now!
