The Industry

Arguments to strengthen our present and future.

Today in day, Life Insurance policies have become true financial tools, since they are instruments that allow if the income of a parent are curtailed by his untimely death, his wife have safety and comfort for the rest of his life and so she will not know hardship or needs. They are a guarantee that nothing was missing to your children, including an appropriate education, even in the case that he died before seeing those desires, which are in reality its obligation made for them by the fact of having them brought to the world.

They are a mechanism through which the parent guarantees that when their days of productivity have been left behind, he will have the economic support needed to live without working, allowing his wife and himself a tranquility for its years of old age.

The Life Insurance policies represent probably the most extraordinary and peculiar agreement never contemplated by the laws of our civilized world because it’s a unilateral agreement, in which obligations are all in a single party. By virtue of this agreement, a big financial institution irrevocably undertakes to provide all these things that have been mentioned in the future. Instead the parent does not assume any obligation, except for the responsibility of saving money systematically, holding at all times the right to terminate the agreement, while the other side only could do it with your consent. In addition provides that if the income of the parent stop for disability, the benefits will be of it, anyway, such as if he had been able to keep up with their deposits. By all these arguments is that it is necessary to consolidate further, our present and our future through a Life Insurance policy.

Some background

Basically insurance is protection against unexpected loss through the principle of sharing risk. It is a concept that indeed comes from quite some time ago. In ancient China, people bending his back on their fields for a whole year and then exposed their crops on weak reeds floating above the turbulent waters of the Yangtze River; downstream to markets. When one of those boats sink in the Rapids, the work of a whole year of a farmer was lost, leaving it in ruins; until several peasants gathered and decided to divide their assets in different boats. Thus, when one or two of those boats disappeared in the yellow waters, much of its harvest remained safe. This is the principle of insurance: protection against catastrophic losses, based on sharing the risk.

The first insurance policy for which there is evidence leads to 1583 in England; Likewise, the business began at Lloyd’s London in 1680. When Mr. Edward Lloyd operated a cafe near the springs of the English capital and as a service to its customers, usually captains of boats, importers or exporters, shipowners and merchants mostly, placed a Board of notices that were advertised dates of departure of vessels, the names of their masters, their destination, description of the load carrying and other relevant information. Those who were interested and accepted to share the risk that each travel involved, they wrote their names on the Board indicating the percentage who were willing to assume. Thus was born the word Subscriber (underwriter), the individual who assessed the risk having to share.

The risk in those days was determined by the character and ability of the captain and a reasonable expectation of the utility that could produce the goods transported. In today’s insurance assessment is based on more scientific studies that are encrypted in the statistics. Mr. Lloyd from Londres eventually left coffee to devote himself to the insurance, and the Corporation today is the world famous Lloyd’s of London.

Insurance in America are relatively recent. They began in the United States in 1759; shortly after 1860 really began to grow and it was a business of a trillion dollars to 1865.