The life insurance policy is there in this world from very beginning. The mentality of people to have some protection against risk can be traced back some 5000 years ago. There weren’t any documents to support the insurance policies but still there were ways to promote it and also help the people get protection against the risks in their lives. The definition of insurance is to have coverage against a risk and if someone wants to protect one’s life, he/she can purchase the life insurance policy.
The first of all the life insurance policies
The concept of life insurance can be traced back to China some 5000 years ago. Insurance as in then was protection against pirates at sea. The way to protect a ship from falling into the hands of pirates was to allow other ships to carry the cargos of different ships so that if a ship was attacked by pirates, most of the important things could be recovered. Apart from the ways China used to protect the ships from the pirates, even in Babylonia, many of the traders used to take risks of the caravan bearers and used to ask them to give a certain amount of money to the traders. The money was returned to the bearers when they brought back the things to the traders. (more…)