Ben Franklin: Father of Modern Insurance
As one of the preeminent founding fathers of the United States, Benjamin Franklin has been heralded with many great achievements. A few of his distinguished achievements include serving as the nation’s first Postmaster General, making significant discoveries regarding electricity, and inventing bifocals.
But perhaps one of his greatest contributions to the United States is also one of his least known accomplishments.
After a great fire devastated Fishbourn’s wharf along the Delaware River in 1730, Franklin knew the event could have been much better contained by organizing the area’s available firefighting resources. This led him to create the Union Fire Company. The country’s first volunteer firefighting department.
However, the new department wouldn’t be able to prevent fires from occurring at all. To protect the financial interests of the residents, Franklin established the first insurance company in America, naming it the Philadelphia Contributorship.
The First Policies
Although it took more than twenty years after the fire of 1730 to be formed, the new insurance company issued its first policy in 1752. Franklin was a supporter of the mutual insurance concept and the Philadelphia Contributorship was established in this way.
As a member of the board, Franklin set forth the terms of the contributorship bringing together members to write 143 policies. Each policy provided coverage for a single peril, fire. Equal payments were paid by each member and had a loss occurred; the funds would have been used for payment.
The policies were written for a term of seven years. During those seven years, not a single claim was made. And, as written within each fire insurance policy, members were returned their premiums. a feature no longer available in today’s marketplace.
A Forward Thinker
Frankin’s work with the Philadelphia Contributorship launched the nation’s insurance industry, which now exceeds $1.3 trillion in annual premiums. Today’s marketplace includes many other forms of insurance Franklin proposed nearly 200 years ago including life insurance, annuities, and crop insurance. Each of these is now an important financial instrument used in protecting millions of Americans and their assets.
Featured Blogs
- How to Host a Successful Virtual Holiday Party
- Is One of These Factors Keeping You from Seeking Life Insurance?
- Ben Franklin: Father of Modern Insurance
- Who Invented Insurance Anyway?
- Common Senior Micronutrient Deficiencies
- The Art of Aging Well
- Insure What? Celebrity Body Parts Insured
- Using HSAs In Your Retirement Planning
- 6 Strange Insurance Policies You Can Buy
- How Valuable Is Cash Value Life Insurance?
- Mistakes You can Make When Exercising at Home
- Why You Should Never Lie to the Underwriter
- Forget Salad Recipes, Try a Salad “Matrix”
- Will My Life Insurance Policy Cover Me If Something Happens While Traveling?
- I’ve Been Denied a Life Insurance Policy. Now What?
- Bucket List Ideas and Why It’s Important
- Getting Fit Before the Medical Exam
- The Basics of Insurance APIs
- 8 Gas Savings Tips During Summer
- How to Stay Hydrated During the Summer Season
- Safety Tips for Outdoor Barbecues
- What You Don’t Know About Senior Fitness
- The Last Guide to Chair Yoga You’ll Ever Need
- Sleep Care is the New Self-Care
- Tips for Making Dinnertime Special
- 7 Ways to Improve the Quality of Life of Seniors You Care About
- Ways to Get the Best Health Care
- Adapt Your Home for Safe Mobility
- Why Gardening is Good for Your Health
- Best Nutrition Apps
- Reducing Stress Through Music
- How to Live Without Regrets
- Power Foods that Lift the Spirit
- Benefits of Grateful Living
- Remote Activities You Can Do with Your Grandkids
- Post Pandemic Travel Tips
- Exercises for a Sedentary Lifestyle
- Life Insurance for Your Newlywed Child
- Preventing Heart Health Issues
- Does a Stay-at-Home Spouse Need Life Insurance?
- Whole or Term Life Insurance
- Why You Should be Grateful for the Year 2020