What is the History of Life Insurance?
How long has life insurance existed? When did it emerge, and why has it grown? The answers might surprise you.
Ancient Soldiers, the Colosseum, and…Life Insurance?
Did you know that life insurance first appeared in 100 B.C. in Ancient Rome? Called “burial clubs,” soldiers would contribute funds to cover one another’s funeral expenses. Eventually, the clubs were expanded to include money for the deceased’s family – the first beneficiaries.
With the decline of the Roman Empire, life insurance disappeared from historical records until the end of the 17th century. It reappeared in London in 1662, enabled by the discovery of predictable patterns of life spans (based on church records), and the first mortality table, which was used to link average life spans and life insurance premiums. Later, the United States’ first insurance company emerged in 1732, and started offering life insurance in 1760.1
Women & Life Insurance
The 19th century saw the rise of life insurance in the United States. In the 1840s, it became legal for women to be the beneficiaries of their husband’s life insurance policies. Previously, it had been illegal for women to even sign insurance contracts. The option for men to offer their wives financial security through life insurance motivated many to get life insurance. The 1840s also experienced the growth of mutual life insurance companies, which increased the economic stability of the industry.2
Astronaut Insurance
By the 1960s, life insurance had become very common in the United States. However, individuals with particularly dangerous lifestyles had to get creative – people like Neil Armstrong and the rest of the moon landing crew. Before the launch of Apollo 11 in 1969, Armstrong and his fellow astronauts signed postcards. They knew, in the event of their deaths, the postcards would gain significant monetary value, and their families would be able to sell them for a creative version of life insurance. Luckily, the postcards were not needed.3
Life Insurance Today
Life insurance has definitely changed a lot since 100 B.C – it has become a household norm! Millions of Americans have chosen life insurance as their way to help protect those they care about. In fact, as of 2018 59% of Americans own a life insurance policy.4
Life insurance is truly a part of the bedrock of American financial security in the 21st century. Life insurance can be part of your financial security plan. Consider life insurance to help protect the financial future of those most important to you. You can view AAA Life Insurance Company’s different life insurance options, which are customizable for your needs, on AAA Life’s products page or call (888) 422- 7020 to speak to an agent directly.
1 Timeline: The History of Life Insurance. LifeHeathPro, 2012.
2 Downing, Jesse; Reamer, Norton. A Brief History of Life Insurance. LifeHealth, 2016
3 Joffe-Walt, Chana. What the Apollo Astronauts Did for Life Insurance. NPR, 2012.
4 2018 LIMRA Insurance Barometer Study.