Life is one of the gifts that must be taken care of as well as possible. Therefore, there are now many companies offering life insurance services. In addition to maintaining a person's life, this service can also ease the burden of the family in financial terms when one of the family members died. So, nowadays most people decided to use these services so they can help them primarily in financial terms. In this article will discuss the history and some types of life insurance that can be used.
The History of Life Insurance
The insurance system became known around the year 2500 BC by the Babylonians who at that time lived in the valley of the Euphrates and Tigris rivers, which are now known to be the territory of the country of Iraq. At that time, when a ship owner needed additional funds to start a venture or repairing the vessel, he would borrow some money to the merchant by giving his ship as the collateral. So at that time, King Hammurabi as the leader of the Babylonians issued the world's first written law on insurance. The law is referred to as "The Hammurabi Code" in which it explains the various consequences which tend to be extreme but used one of the main principles in the insurance system. That the borrower does not have to pay the borrowed funds when the borrower experiences major disasters such as deaths, disabilities, and natural disasters.
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Various Types of Life Insurance
As time goes by, life insurance is growing and having various types with different benefits depending on the needs of the consumers. Here are some types of insurance and benefits, which are:
1. Term Life Insurance. It is a type of insurance that has a function to maintain and provide protection to the insured within a certain time in accordance with the agreement. This type of insurance is usually used for family purposes, especially in terms of children's education. In addition, in this type of insured can determine the amount of premium in accordance with its ability.
2. Whole Life Insurance. It s a type of insurance that will provide protection to the insured during his life but some companies limit the protection period up to 100 years. In general, this type is used by someone who has no other dependents and applying for insurance funds for savings in old age. However, the premium value you have to pay tends to be more expensive than other types of insurance.
3. Endowment Insurance. It is a type of insurance that has two uses at once. This insurance can be used to provide protection as well as long-term savings. In this type, all premiums paid will be given back to the insured upon death in the contract period. In addition, when the insured is still alive until the term of the contract expires, then he will get the entire value of premiums that have been paid.
4. Unit Link Life Insurance. It is a type of insurance that combines aspects of investment while providing protection. Thus, in general, this type of insurance is used by customers who do not understand well about investment but still want to invest and still get protection during the contract period.
So this article hopefully can be a good source of information for you in understanding life insurance.
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