About Life Insurance Companies

Life insurance companies are a relatively new type of insurance companies. Life insurance companies are usually set up to sell only life insurance, but can branch out to other types of insurance policies as well. Read on to learn what these companies offer and how to get started thinking about life insurance.

Identification

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

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

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

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

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

• Financial Shopper Network: Life Insurance
• Lifequote.com: History of Life Insurance