Although, It makes evolutionary sense to fear and run from death - the recognizing and accepting of mortality is one of the most important steps humanity ever took in creating modern civilization. While early religions may have provided the first system of investing something before death in order to insure something after it, humans quickly found the need for something more practical.

The first historical record of what we know as life insurance came from ancient Romans in the form of “Burial Clubs.” Romans believed that in order to avoid being a tortured ghost, one had to be buried “properly.” This meant extravagant measures to create elaborate ceremonies that honored the life of the dead. To meet these high standards, common citizens would join a “burial club” and regularly financially contribute to the club. When a member would die, the club would finance his burial and in some clubs, even give the family of the deceased a stipend.

Modern life insurance, where the insurer insures for monetary purposes was born in 17th century England. Underwriters would meet at public coffee houses and discuss creating policies for traders like merchants and ship owners.

In the United States, the first form of life insurance available came from Presbyterian Synods in Philadelphia and New York.  They established the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759. Episcopalian priests followed suit and began a fund of their own in 1769.  In the period from 1787 to 1837, over twenty new life insurance companies were started.

However, that period of growth was tainted by numerous business coming that arose from slave owners who took out policies on their slaves.

This article is one of a series of 4. The continuing article is: How Life Insurance Grew Popular.