The life insurance policies were originally introduced in the early 2000BC in China and in18thcentury BC in Babylon and also in Rome. By then the only things that these policies covered were that some of the societies made by the people made insurances with the individuals to fund their funeral sand the burials and also some of the beneficiaries were helped financially if they survive any unfortunate incident. On the other hand the modern type of the insurance was first developed in England for traders. The merchants, ship owners and sponsors were allowed to have meeting with the Lloyd’s Coffee House for deals. Before the American Civil War a lot of insurance companies in the United States used to insure the lives of the slaves for their owners. But according to the bills passed in 2001 and2003 under the Emancipation Proclamation a few companies were required to retrieve the records of the slave insurances to remove them. A total of 485 slave insurances were made and these were then prohibited.
The life insurance policies were used as a positive market in favor of the people and their securities in the United States in the 18th century in Charleston, South Carolina being the fire insurance only which later on added a lot of other types. The life insurance companies provided by them now not only include the insurances on life but also other types of insurances on various items such as cars, pension solutions, precious items and a lot of other things. The premiums paid by the clients are deductible from the taxable income of the client and the increment in the cash value in the policy is not exposed to the income taxes. The pension insurance is a type of the term assurance. In this a pension fund is built throughout the working life of the person. After the retirement of the client the funds are payable to the person. The life insurance companies also provide an annuity contract in which the client pays an initial premium which eventually pays out as a sum at the specified interval in one’s life.
There are two periods in the annuity contract that are -Accumulation- in which the payments are made into the account and;-Annuitization- in which the insurance company pays out the client. There are rules that specify the method of the money withdrawal from the annuity contract. The rules are different for different countries. Initially when the modern life insurance schemes came into the knowledge of the people, they were not appreciated by the people. The major reason behind the criticism was that the policies were put to exploitation and fraud.Another major thing that came into the awareness was that due to these policies the policy holders are likely to face a motive to their murder. A very large number of the similar cases have been witnessed by the world so; due to these cases the insurance companies have added new investigation methods before the payment is made.
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