Life Insurance Yorktown Heights

Life Insurance Throughout History

The concept of preparing for the inevitable has transited time and cultures from ancient civilizations to today. Life insurance in the form of “burial clubs” goes to back to Roman times. Life insurance in the Roman Empire helped a decedent’s family pay for burial costs and help the family through tough times. The Romans believed too that anyone who died and did not receive a respectable burial would become an unhappy ghost to haunt them throughout the future.

A new concept

The first modern life insurance company began in London, England in 1706 with the “Amicable Society for a Perpetual Assurance Office.” This society collected payments from each member (about 2000, at the time) based on their age (and the number of shares they owned in the society). The families of deceased society members would then get a distribution at the end of the year proportional to the number of shares the deceased had purchased initially or through the years.

In 1762, Edward Mores founded the “Society for Equitable Assurances on Lives and Survivorship” as the world’s first mutual insurer (i.e., owned by the shareholders). Mores used newly developed actuarial charts that based risk on the policyholder’s age and the average mortality rate for the same. He even coined the term “actuary” as someone who deals with the measurement and management of risk. This system formed the basis of modern insurance science and practice in the 20th and 21st centuries. During this time too, at Edward Lloyd’s Coffee House (also in London), was a popular hangout and meeting place for anyone in the maritime industry; captains, merchants, and owners. Eventually, insurance was sold from Lloyd’s, of London.

A new continent

Life insurance in the United States began in the late 18th century. The Presbyterian Church created a fund for poor and in-need women and children of Philadelphia and New York City. The Episcopal Church created a similar fund in 1769. By the middle of the 19th century, there were more than 20 life insurance companies operating in America. The armed services began funds for the widows and children of deceased service members by creating the Army and Navy Mutual Aid Associations in the late 1800s.

Sales of life insurance policies increased dramatically after World War I and by the years of the Great Depression, 120 million life insurance policies were sold and in effect in the United States. After World War II, the baby boom years brought more customers around to the idea of purchasing life insurance to be sure that the deceased survivors do not face hardship after they’re gone. By the mid-1970s, almost 75 percent of the American population owned a life insurance policy.


A secure future

Luis Guerra has been in the insurance business for over two decades. He has the experience with the industry and the commitment to his customers’ complete satisfaction that you have been looking for in an insurance agent. With a dedicated staff working to support him, you can bet that no one will work harder than the team at Luis Guerra Agency LLC. For a friendly and free policy review, call Guerra Insurance and talk about how you can provide for your family even after your gone.