Life insurance or life assurance is an agreement between the plan owner (the insured) and, the insurer (insurance company) where the insurer agrees to pay a sum of money fixed in the contract at the time of the insured?s demise. This may also comprise but also promise to include indicants such as an incurable disease. The plan owner agrees to pay a certain sum each month, three months, six months or a year which is affirmed upon by the contract. The policy can also state that the insurer will pay for memorial service and some health expenses independently from the agreed compensation sum.
How Did Insurance Start:
The amusement sum usually goes to the agreed beneficiaries in the result of the policyholder?s death. The beneficiaries are usually predetermined when the insurance is purchased but can be altered by the policyholder at any time before his/her death. The acknowledged sum is usually at least one hundred thousand dollars for your average plan. The amount can be increased but the premiums also increase. Another way to increase the sum is to have several life insurance policies for one policyholder.
The earliest familiar kind of a real kind of a written agreement insurance agreement came as early as three or a pair of millennia B.C.These simple agreements stated that a merchant, trader or transporter of goods would guarantee the safety of said cargo or shipment. If the goods were lost, the transporter of said goods would pay either the sender or receiver for the loss or both. Other insurance contracts were simply a fee paid by the carrier so that of the goods were lost then the fee would cover the said loss of goods. These agreements were usually done by a verbal agreement, but they were later back up by laws etched in stone and papyrus.
As human society became more modern, many traders would hire retired soldiers, i.e. mercenaries, to help shepherd their goods from place to place. These men could in some ways be called the first security guards of human society. But it was hazardous and difficult work, but for the soldiers of fortune of that time, it was some of the best work one could get.
Before the American Civil War plantation owners could ensure the lives of their slaves against suddenly or unnatural death. They could also ensure against crippling? damage? to a slave. The plantation owner would be paid a sum if the said slave died or was rendered unable to work. This repulsive practice was done because slaves were seen as property, not as human beings. The sale of these policies ended fifteen years before the Emancipation Proclamation was passed.
In the 21st century, all insurance companies sell some form of life insurance. It is the number one form of insurance purchased globally. Much of it is sold to people after they have children in hopes that in the event of a premature or unexpected death the sum paid to the survivors will be able to use the money to bury their loved ones and support them financially.
Graham McKenzie is the content syndication coordinator a leading South African Life Insurance and Life Cover portal.
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