A contract of life insurance is one in which one party agrees to pay a given sum upon the happening of a particular event contingent upon the duration of human life , in consideration of the immediate payment of a smaller member sum or certain equivalent periodically payment by another. The origin of the concept of life insurance, as we know it, can be traced to ancient Rome. Caius Marius a military leader created a burial club among his troops, so in the event of the unexpected death of a clubs member, other members would pay for the funeral expense.
The history of life insurance dates back to 3000BC. Learned scholars expression “Yagaksheman” found in the Rig Veda refers to a sort of social welfare insurance; the ancient Aryans seem to have developed such a concept. Edwin W Kopt in his treatise origin developed and practices of livestock insurance , credits India with being the mother of insurance practices, and opines that the development started in India and after that spread to ancient Babylon. Insurance began as a way of reducing the risk of traders, as early as 5000 BC in china and 4500 BC in Babylon. Life insurance dates only to ancient Rome; burial clubs covered the cost of member’s funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century in England, originally as insurance for traders: Merchants, ship owners and underwriters met to discuss deals at Lloyds coffee house, predecessor to the famous Lloyds of London.
The first insurance company, the society for the assurance of widows and orphans, was founded in London in 1699. After repel of the royal charter in 1720 providing monopoly to the London assurance and the royal exchange assurance companies was phenomenal. Competing companies started launching many new attractive life insurance plans. The first life insurance company of the United States was Corporation