July 27th, 2010 by Jade Gould
| Tags: Insurance, Life Insurance
Life Insurance
- Life insurance emerged from the Romans in the form of burial clubs, organized to cover funeral costs. The guilds in medieval times would provide insurance for their members to cover burials, which is one of the essential functions of life insurance. The guilds would also provide financial assistance for the members.
Development
- According to the Economic History Association, the Presbyterian Synods in Philadelphia entered the insurance business and established the first life insurance company in 1759. It was called the Corporation for Relief of Poor and Distressed Widows and Children. The church established life insurance for the families of its ministers and began extending the benefits to non-ministers.
Term
- The first form of life insurance was essentially term life insurance, because it was set up for the time period that the member was with the organization and only provided benefits upon death of the named insured. By the close of the 19th century, commissions were set up in many states to regulate insurance companies who were using countless methods of calculating life insurance risk. In the early 20th century, actuarial science emerged as a method of uniformly calculating life insurance risk and rates.
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