The Life Insurance System and How it Originated

PRLog (Press Release) - Jan 13, 2010 -
Chicago (InsuranceAgents.com) – Life insurance is one of the oldest forms of insurance to exist today. Today, life insurance exists to provide financial security to family members who lose a loved one that was a sole provider to their family. Without the sole provider, life insurance policies are allowing families to stay afloat, keep their houses and pay off debt.

http://www.insuranceagents.com/life-insurance-history.html

In a recent article posted by InsuranceAgents.com, “Whole Lotta History: A Look Back on Life Insurance,” they talk about how the origin of life insurance began with a principle that if a house was burned down or damaged in a village, others would help repair and rebuild the home. “Lorenzo Tonti, a 17th-century Italian-born banker, then created a concept known as the tontine annuity system,” states the article, “Under this system, groups of individuals were formed without any reference to age, and each member contributed to a fund that was eventually established. The sum was then invested and by the end of the year, the interest was split evenly among the survivors.” This system is still relevant to the current state of life insurance policies, with some changes that the course of time has allowed.

Life insurance is not a topic that many people are hoping to discuss but it is important to remember as you get older that life insurance policies are not designed for you but for your family and their protection in their future. Without life insurance, who knows what the future will hold for your family.