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About Life Insurance Companies

Thursday, April 30, 2009
Related Tags: insurance | life | burial | lloyd | policyholder
 

Instructions

Identification

  • Step 1:
    Life insurance companies are a part of the personal insurance industry. These companies provide policies to cover the cost of burial and financial settlement after death of the policyholder.

Function

  • Step 1:
    The sole function of life insurance companies is to insure the payment of obligations once the policyholder dies. This payment is built up over time through premiums paid over the life of the policy.

Societies and Clubs

  • Step 1:
    The life insurance trade started with the formation of burial clubs and societies. These clubs and societies were made up of members who paid into a central pool to ensure their proper burial and the financial security of their families.

First Insurance Company

  • Step 1:
    The first modern life insurance company was Lloyd's of London. Lloyd's started as an insurer for traders, merchants and ship owners who met with underwriters to discuss business at the firm.

First American Life Insurance Company

  • Step 1:
    The first American life insurance company was started in 1760. The policies sold were modeled after the English type of insurance from Lloyd's.

Resources


About Life Insurance Companies Provided by eHow.com
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