Purchasing life insurance has ner been, and ner will be, fun, Nertheless, it is important-especially for the high-nel-worth individual who must provide liquidity for estate ning purposes. To put the purchasing decision in perspecti, the author presents a brief history of life insurance, explaining the delopments that ha led to today's array of products. Their variegated evolution means certain inevile compromise that an advisor can illuminate and some salesmen may obfuscate.
Brief History of Life Insurance
"[L]ife insurance as we know it began in the 19th century Industrialization-with its cities, factories, money economy, and an urban 'saving' class-set the stage for life insurance as a large-scale, national institution. Life insurance, it can truly be said, is a product of modern industrial society. [Davis W. Gregg and Vane B. Lucas, "A Brief History," Life and Health Insurance Handbook (1973)]
The first life insurance company in North America, the Presbyterian Ministers' Fund, was eslished in 1759. The Insurance Company of North America, chartered in 1794, was the first commercial enterprise to sell policies; it sold only six policies in fi years and discontinued operations in 1804.