Life Insurance is a financial product that provides a payout to the beneficiaries of the insured individual upon their death. The concept of Life Insurance dates back centuries, with various forms of insurance-like arrangements existing in ancient civilizations. However, the modern Life Insurance industry as we know it today began to take shape in the 18th century.
The first recorded Life Insurance policy was issued in the early 18th century. In 1706, the Amicable Society for a Perpetual Assurance Office, a mutual Life Insurance company, was established in London, England. This marked the beginning of the formal Life Insurance industry, where individuals could purchase policies to protect their loved ones financially in the event of their death.
The Amicable Society's policies were relatively simple, offering a fixed sum of money upon the death of the insured individual. Over time, Life Insurance policies evolved to include more complex features, such as the ability to accumulate cash value and provide additional benefits like disability coverage and critical illness protection.
It's important to note that the concept of Life Insurance and the first policy issuance may vary depending on the definition of Life Insurance used and the historical context considered. However, the establishment of the Amicable Society in 1706 is widely recognized as a significant milestone in the development of the Life Insurance industry.