Impress your future clients with some history! It’s a great conversation starter and will give them some perspective on the industry. They’ll think you’re a life insurance expert!
Did you know that life insurance existed in the world since ancient Rome? People have been protecting their legacy and families for centuries. But when and how exactly did life insurance start?
100 B.C.
A Roman military leader, Caius Marius, came up with the idea of a burial club among his troops. Thus, in the event of an unexpected death of a club member, the surviving members of the group would pay for the funeral. This situation was where the concept of modern life insurance first began.
1688
A coffee shop in London named ‘Edward Lloyd’s Coffee House’ was a popular place to meet ship captains and owners. Over time, it developed into a regular place for shipping news. Eventually, it became a marine insurance hub. Having a dedicated meeting place to discuss business and asset protection paved the way for the creation of many rudimentary insurance contracts.
1837-1875
The financial crisis shifted businesses towards mutualization in 1837, and 17 mutuals (that required little initial capital) were chartered. The spread of these mutuals created a boom period for life insurance companies, thus prompting the foundation of the Widows and Orphans Friendly company in Newark. They had only one product: burial insurance. This company was the first to make life insurance available to the working class. That company is what we know today as Prudential.
1911-1930
In 1911, the Equitable Life Assurance Society wrote a policy covering all 125 employees of Pantasote Leather Company. This occasion was the birth of group life insurance. After World War I, life insurance sales rose dramatically. By the Great Depression, there were life insurance policies for almost as many people living in the United States at the time – roughly 120 million policies.
1965-1976
Serviceman’s Group Life was an enacted law during this period to ensure coverage for army members on active duty. By the end of World War II, roughly 72 percent of the adult population in the United States owned some form of life insurance.
2001-2010
The September 11th terrorist attacks shook society. On that day, 2,977 people died, and life insurance companies paid out $1.2 billion in claims.
Despite the tragedy, a few years later, the economic recession saw many families struggling to afford basic necessities. By 2010, the number of life insurance policies held by adults decreased significantly. Thirty percent of U.S. households had no life insurance protection at all, and 44 percent had only individual life insurance, marking an unprecedented low for the life insurance industry.
The history of life insurance gives a person some great insight into how life insurance came into this world. Learning more about where it came from and how it has helped others can help one decide if a policy is right for them.
Agents
We hope that this information on the history of life insurance is interesting to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
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This article was updated on 9/10/24.
