If risk is like a smoldering coal that may spark a fire at any moment, then insurance is our fire extinguisher.
Countries and their citizens need something to spread risk among large numbers of people and to move risk to entities that can handle it. This is how insurance emerged. Read on to learn about how insurance evolved and how it can work to protect you from being burned by risk.
King Hammurabi's Code
The main concept of insurance - that of spreading risk - has been around as long as human existence. Whether it was hunting giant elk in a group to spread the risk of being the one gored to death or shipping cargo in several different caravans to avoid losing the whole shipment to a marauding tribe, people have always been wary of risk.
The first written insurance policy appeared in ancient times on a Babylonian obelisk monument with the code of King Hammurabi carved into it. The "Hammurabi Code" was one of the first forms of written laws. These ancient laws were extreme in most respects, but it offered basic insurance in that a debtor didn't have to pay back his loans if some personal catastrophe made it impossible (disability, death, flooding, etc.).
...Continue with the History of Insurance series to learn more about the evolution of Insurance.
Source: Andrew Beattie is a managing editor and contributor at Investopedia.com.
Showing posts with label protection. Show all posts
Showing posts with label protection. Show all posts
Monday, 28 February 2011
History of Insurance - Underwriting
The practice of underwriting emerged in the same London coffeehouses that operated as the unofficial stock exchange for the British Empire. In the late 1600s, shipping was just beginning between the New World and the old as colonies were being established and exotic goods were ferried back. A coffeehouse owned by Edward Lloyd, later of Lloyd's of London, was the primary meeting place for merchants, ship owners and others seeking insurance.
A basic system for funding voyages to the new world was established. In the first stage, merchants and companies would seek funding from venture capitalists. The venture capitalists would help find people who wanted to be colonists, usually those from the more desperate areas of London, and would purchase provisions for the voyage. In exchange, the venture capitalists would be guaranteed some of the returns from the goods the colonists would produce or find in the Americas. It was widely believed that you couldn't take two left turns in America without finding a deposit of gold or other precious metals. When it turned out that this wasn't exactly true, venture capitalists still funded voyages for a share of the new bumper crop: tobacco.
After the voyage was secured by venture capitalists, the merchants and ship owners would go to Lloyd's and hand over a copy of the ship's cargo to be read to the investors and underwriters who gathered there. The people interested in taking on the risk for a set premium would sign at the bottom of the manifest beneath the figure indicating what share of the cargo they were taking responsibility for (hence, underwriting). In this way, a single voyage would have multiple underwriters, who would try to spread their risk as well by taking shares in several different voyages.
By 1654, Blaise Pascal, the Frenchman who gave us the first calculator, and his countryman Pierre de Fermat discovered a way to express probabilities and, thereby, understand levels of risk. Pascal's triangle led to the first actuary tables that were, and still are, used when calculating insurance rates. These formalized the practice of underwriting and made insurance more affordable.
Source: Andrew Beattie is a managing editor and contributor at Investopedia.com.
A basic system for funding voyages to the new world was established. In the first stage, merchants and companies would seek funding from venture capitalists. The venture capitalists would help find people who wanted to be colonists, usually those from the more desperate areas of London, and would purchase provisions for the voyage. In exchange, the venture capitalists would be guaranteed some of the returns from the goods the colonists would produce or find in the Americas. It was widely believed that you couldn't take two left turns in America without finding a deposit of gold or other precious metals. When it turned out that this wasn't exactly true, venture capitalists still funded voyages for a share of the new bumper crop: tobacco.
After the voyage was secured by venture capitalists, the merchants and ship owners would go to Lloyd's and hand over a copy of the ship's cargo to be read to the investors and underwriters who gathered there. The people interested in taking on the risk for a set premium would sign at the bottom of the manifest beneath the figure indicating what share of the cargo they were taking responsibility for (hence, underwriting). In this way, a single voyage would have multiple underwriters, who would try to spread their risk as well by taking shares in several different voyages.
By 1654, Blaise Pascal, the Frenchman who gave us the first calculator, and his countryman Pierre de Fermat discovered a way to express probabilities and, thereby, understand levels of risk. Pascal's triangle led to the first actuary tables that were, and still are, used when calculating insurance rates. These formalized the practice of underwriting and made insurance more affordable.
Source: Andrew Beattie is a managing editor and contributor at Investopedia.com.
Monday, 21 February 2011
WHY SMART TERM? - Life Insurance Ontario by Smart Term Life Insurance - FAQ - SmartTerm.ca
Why SmartTerm? We've posted this video from our Frequently Asked Questions to answer that one.
SMART TERM PLAN ADVANTAGES - Smart Term Life Insurance - FAQ - SmartTerm.ca
Let us, through this video from our Frequently Asked Questions series, tell you about SmartTerm's great plan advantages.
BUY ONLINE RISK FREE - Life Insurance Ontario by Smart Term Life Insurance - FAQ - SmartTerm.ca
Worried about buying online? Check out this video from our Frequently Asked Questions Series.
Wednesday, 9 February 2011
Why Is It A Smart Choice To Choose SmartTerm?
Listen to the short YouTube video below to find out why not only is SmartTerm a smart choice, but why insurance is so important. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Where Can I Find Out More About You On The Internet?
Just check out our YouTube video below to answer this question. Once you have checked us out, if you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Is SmartTerm Giving Away A Prize?
Listen below for the exciting answer to this question from our Frequently Asked Questions Series. It's part of our way to say thank you for your interest in our company. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
How do I Start The Application Process?
Find out more about how to start the application process through this short tutorial from our Frequently Asked Questions Series. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
What Is Life Insurance?
Wondering what Life Insurance is all about? We have a video below for you to watch, a part of our Frequently Asked Questions Series. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Is Mortgage Insurance Affordable?
Frequently Asked Questions answered by our team of professional Insurance Agents at Ontario's SmartTerm Life Insurance Company. Watch the YouTube video below for a quick tutorial. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Why You Want Mortgage Insurance?
Check out the video below to find out why. The SmartTerm Insurance Company team has created these videos based on Frequently Asked Questions. Please click below for your quick tutorial. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Is Your Life Insurance Costing You Too Much?
SmartTerm Life Insurance has assembled some of our Frequently Asked Questions for you to peruse. We have recorded them for your convenience and placed them on YouTube. Please click below for a quick tutorial. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Are You Paying Too Much for Mortgage Insurance? Get 60% off!
SmartTerm Life Insurance has assembled some of our Frequently Asked Questions for you to peruse. We have recorded them for your convenience and placed them on YouTube. Please click below for a quick tutorial. If you have any further questions, please contact SmartTerm Life Insurance today at 1-866-699-TERM (8376). Our agents will be happy to assist you.
Thursday, 20 January 2011
Why SmartTerm?
Why SmartTerm?
Why choose term life insurance brought to you by SmartTerm? The answer is simple: we have the strength to be there for you to help provide peace of mind for your loved ones.
Our goal is to set a standard that is industry wide. To provide the best of both worlds as a web based corporation with human interaction. To hear what our clients are asking for, to build on this by providing new products at a competitive price with compassion and care. And finally, to make this process easy and transparent. Through the SMARTTERM CALCULATOR, you can simply choose the type of coverage you wish, with the premium you can afford. There is no catch. It is simply put “SMART”.
Our needs analysis calculator will help guide you as to the amount you might require to meet your current and future needs. We provide an extensive description of our products and a toll free number to answer any questions.
You can apply for coverage online, right here, right now in under 5 minutes. Use our
SMARTTERM CALCULATOR now and create a personalized term insurance plan that gives you trusted, low cost coverage for those you care about most.
Sunday, 2 January 2011
Why Term Insurance?
Why Term Insurance? It’s a smart, trusted way
to protect your family
If you could always be there, watching over those you love, you wouldn’t need life insurance. But since you can’t, life insurance is essential for your family’s future and your peace of mind. After all, if you were to pass away suddenly, what would happen to those who depend on your financial support?
SmartTerm Life Insurance is a simple, low-cost solution which provides you with a guaranteed rate for the period you have chosen, and cash benefits from $100,000 to $5,000,000.
With SmartTerm insurance you can:
* Help prevent your financial responsibilities from burdening your family
* Cover obligations such as funeral costs and final medical expenses.
* Help protect your spouse and children from losing what you worked for both now and long into the future
* Make sure there is something to pass on to your children and grandchildren for their future
to protect your family
If you could always be there, watching over those you love, you wouldn’t need life insurance. But since you can’t, life insurance is essential for your family’s future and your peace of mind. After all, if you were to pass away suddenly, what would happen to those who depend on your financial support?
SmartTerm Life Insurance is a simple, low-cost solution which provides you with a guaranteed rate for the period you have chosen, and cash benefits from $100,000 to $5,000,000.
With SmartTerm insurance you can:
* Help prevent your financial responsibilities from burdening your family
* Cover obligations such as funeral costs and final medical expenses.
* Help protect your spouse and children from losing what you worked for both now and long into the future
* Make sure there is something to pass on to your children and grandchildren for their future
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