National Life Insurance Day takes place on May 2 every year. It marks the anniversary of the first day that life insurance became available in the United States. This day celebrates life insurance and reminds us of the benefits of having it. It is important to have life insurance as it can ensure we don’t fall into debt, pre-fund a child’s college education, provide surviving family members with the chance to move on with a clean slate, and keep a business afloat for a while in the event of the death of a family member who owned a business. Life insurance makes it possible to establish an emergency fund and seek out high-quality investment opportunities to build wealth while making sure your family is taken care of. Life insurance is a security for the future.
History of National Life Insurance Day
The earliest-known life insurance policy was taken out at Royal Exchange, London, on June 18, 1583. A Richard Martin insured a William Gybbons, paying 13 merchants 30 pounds for 400 pounds if the insured died within a year. In modern times, the first company to offer insurance was the Amicable Society for a Perpetual Assurance Office, which was founded in London in 1706 by William Talbot and Sir Thomas Allen. Each member made an annual payment per share on one to three sales with consideration to the age of the members being 12 to 55. At the end of the year, a portion of the ‘amicable contribution’ was divided among the wives and children of deceased members, in proportion to the number of shares the heirs owned.
During the late 1760s, the sale of life insurance in the United States began. On May 2, 1759, the charter was recorded for the Corporation For Relief of Poor and Distressed Widows and Children of Presbyterian Ministers, which was America’s first life insurance company and was created by the Presbyterian Synods in Philadelphia and New York City. Known as the Presbyterian Ministers Fund for Life Insurance, Presbyterians formed this non-profit mutual fund for their ministers. Between 1787 and 1837, over two dozen life insurance companies were started, but fewer than half a dozen survived.
May 2 was designated each year for the celebration of National Life Insurance Day. In 2014, Liran Hirschkorn, who was an Independent Insurance Agent at Best Life Quote, submitted National Life Insurance Day to commemorate the anniversary of life insurance becoming available in the United States.
National Life Insurance Day timeline
In 1583, the earliest-known life insurance policy is taken out at the Royal Exchange, London, on June 18.
The necessary mathematical and statistical tools are put in place for modern life insurance.
The Episcopalian priests create a relief fund comparable to the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers.
Military officers band together to form both the American Armed Forces Mutual Aid Association (A.A.F.M.A.A.) and the Navy Mutual Aid Association (Navy Mutual), inspired by the plight of widows and orphans left stranded in the west after the Battle of the Little Bighorn and by the families of U.S. sailors who died at sea.
National Life Insurance Day FAQs
What is a good age to get life insurance?
Your 20s are the best years to start a life insurance policy.
What is the benefit of life insurance?
Life insurance is important to secure your financial future.
What is life insurance and how does it work?
Life insurance is a contract between you and an insurance company. In exchange for your premium payments, the insurance company will pay a lump sum, known as a death benefit, to your beneficiaries after your death.
How to Observe National Life Insurance Day
Sign up for a life insurance plan
Sign up for a life insurance plan if you don’t have one, as its importance cannot be overemphasized. Use this opportunity to create a plan for yourself.
Read more to educate yourself
Educate yourself more about life insurance. Learn more about the different types of life insurance policies available. This will help you understand your needs and enable you to educate others.
Create awareness for others
National Life Insurance Day is a day to create awareness about the importance of having life insurance among your family and friends to help them secure their financial future. This is the time to educate others about the benefits of life insurance.
5 INTERESTING FACTS ABOUT LIFE INSURANCE
The first life insurance company in the world
The Amicable Society for a Perpetual Assurance Office was the first life insurance company in the world.
There is a “whole life” insurance plan
As the name implies, this insurance plan lasts for your whole life — the premium on these policies is more expensive than those of term life insurance.
You can get a term life insurance
The term ‘life insurance plan’ is the most affordable type of insurance plan, which provides you with coverage for a specific amount of time, usually between 10 and 30 years.
It is a stream of income
A life insurance plan can provide a stream of income for a family to live on for a period.
Why National Life Insurance Day is Important
It is a day of significance
National Life Insurance Day marks the anniversary of the first day life insurance became available in the United States. It demonstrates how important this day is to everyone celebrating it around the world.
It reminds us of our future security and what we stand to gain
On this day, we become more aware of what life insurance means. We are aware of its importance and how it can benefit us by securing our future and that of our loved ones.
It promotes awareness
It reminds those with a financial plan of the benefits. It also teaches those who don’t have life insurance about the importance of taking out a policy.
National Life Insurance Day dates