The History of Insurance. Insurance policies are thought to have origins dating back to the 18th century B.C. and the Code of Hammurabi. In its earliest forms, the insurance policy absolved debtors of their debt liability in the wake of a catastrophic event. Throughout the middle ages, craftsmen trained through guilds paid into a fund that acted as an insurance policy if their building was to burn down. The funds would be used to rebuild, or if the craftsmen were robbed, the coffers would pay their dues until they were back on their feet. Lloyds of London Insurance In the 1600s, with the rise of shipping, Edward Lloyd offered insurance policies in the same coffeehouses that operated as unofficial stock markets. After the venture capitalists, merchants, and shipowners gave a copy of the cargo manifest to Lloyd's so the investors and underwriters could read it, those who wanted to take on the risk signed at the bottom of the manifesto under the figure that indicated their share of the cargo (hence, underwriting). Multiple underwriters took shares in several voyages to spread their risk by signing for them on the manifesto. Blaise Pascal and Pierre de Fermat, the French inventors of the first calculator, found a method for expressing probabilities and assessing risk in 1654. That innovation began to standardize insurance underwriting and made it more economical. The Evolution of The Insurance Industry From here, the idea of insurance premiums began to grow, reaching American shores in the mid-1700s, starting in Philadelphia. Property and Casualty insurance was determined by inspectors from the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire set up by Benjamin Franklin and others. From here, insurance premiums have evolved from ocean marine and inland marine insurance into a multi-trillion dollar industry. These days, underwriters can draw up insurance documents for various covers with premiums based on multiple factors tailored to an individual's needs, from life insurance to healthcare, auto insurance, and much more.
Financial Planning Financial planning is vital for everyone. Maintaining healthy finances and having all of your affairs in order can help you mitigate risk and ensure you are in a good position come your later years. The reality is you never know what will happen as you go through life, and financial planning can help you ensure your finances are robust to carry you through any difficulties when the time comes for you to retire. When Should You Start Financial Planning? It is never too early to begin financial planning. From the moment you get your first paycheck, you should already be looking at how you can prepare for your future. And the earlier you start planning and organizing your finances, the lower your premiums will be and the larger the sum of money you will have should you need to cash any of your plans or policies once you retire. How Should You Plan Financially For Retirement? There are multiple ways you can plan for your golden years. The last thing you want to do is retire and rely on state pensions. that may be available to you At a minimum, you need to take out a life insurance policy to cover your affairs in the event of your death. An IRA (Individual Retirement Account) or an employer-sponsored 401K can help you maximize your savings and build a retirement savings fund. Another good choice is to make sure you are investing wisely while keeping an eye on your personal risk management to ensure you aren't losing your money and your investments remain healthy. A solid retirement plan is best undertaken as early as possible to keep costs and premiums down. It allows your savings and investments to mature over time without the worry you won't have enough to live on once retirement age comes.
Why is insurance a solid career choice? For many people, the idea of an insurance career usually brings to mind one of two options: an incredibly dull job stuck in an office or becoming a slick, manipulative salesman who sells insurance policies that nobody needs. Unfortunately, both of these options couldn't be further from the reality of working in the insurance industry. The first stage is obtaining your insurance license in the state of Michigan. Insurance agents are part of an increasingly innovative field that attracts a diverse workforce of individuals with wide-ranging skill sets. Insurance is also an essential industry that will, at some point, affect almost everyone in the country. There's a lot of range in insurance, from businesses that need liability coverage to individuals who need health insurance. Few people don't have or need one type or another form of insurance. Insurance could be a solid choice if you consider your career path for many good reasons. (1) - You Can Give Back To Your Community. Many people seeking their future careers are looking for something beyond just a paycheck. Many job seekers also want something that has a purpose. People are increasingly interested in careers that offer a chance to give back to their community and the world around them. While it may not seem the obvious choice for a career that does some good in the world, insurance actually could be the answer. An insurance career could satisfy the desire for more meaningful work that truly makes a difference in people's lives and a sense of community. At its core, insurance is an industry that protects community members. For example, an insurance payout could help someone rebuild their home after a fire, (Property Insurance) support their family after the death of a spouse (Life Insurance), or keep the family going if they're injured at work (Workers Compensation). By sharing the risk, insurance can protect individual community members if disaster strikes. Many insurance companies are very active in their communities, choosing to get involved in several charitable efforts, such as local children's organizations, animal shelters, disaster relief, or other causes. (2) - You'll Find An Abundance Of Opportunities. The workforce is aging. In fact, it's projected that 1/3 of the insurance workforce will retire by 2028, which leaves a considerable amount of employment opportunities open for newcomers to the industry. Especially here in Michigan as Michigan is a hub for many insurance companies' headquarters. As the benefits of an insurance career aren't that widely known yet, with very few people expressing an interest in working in the industry, the field is wide open, with less competition than other industries. Once you have got your start in the industry, you will find a wide variety of career options and educational opportunities that can match your specific interests. You might start out in customer service and then find that you enjoy underwriting, claims, or even marketing. Most insurance companies will support you as you find which job best suits your interests and skills. (3) - You Can Develop A Broad Skill Set. Most people think insurance is simply a sales role as a licensed insurance producer. While being effective at sales is a valuable talent when you work in insurance, insurance is not just a sales position. The industry interacts with many other fields and offers various career paths. Insurance companies want team members who have skills in: Communication, Technology, Problem-solving, Research, Analytics, and Organization skills. This industry is constantly evolving as the needs of its customers change. This means that employers always look for people who understand developments like social media, solving complex problems, and cyber communication. (4) - You'll Enjoy Job Security. Insurance isn't going to go anywhere. It's been around for a long time and will stay as long as people still need medical care, drive cars, own homes, and run businesses. During a recession, insurance is one of the most stable industries. No matter what the economy is doing, people and businesses still need to be protected from risks they encounter on a daily basis. Insurance offers more job security than other industries. You can feel secure in your role, and start saving for your future. (5) It's Easy To Get Started! One of the first roles a person has is becoming a licensed insurance producer. There are a lot of different roles in the insurance industry, some of which are very easy to get started in. To work as an insurance agent, all you need to be is over the age of 18 years old and be willing to obtain your insurance producer's license. At the Michigan School of Insurance, we offer all the necessary pre-licensing support you will need to become a licensed producer in either Property & Casualty Insurance or Life, Accident, and Health Insurance. You don't need any work experience. The whole process of becoming an agent can often be completed in just a few weeks. Later on, as your career experience and knowledge increase, you can choose a specialty depending on your chosen path and interest level. The good news is that often the company you work for can help you with the specifics that you will need to continue to evolve within this exciting and ever-changing industry.
Why Someone Needs Life Insurance? On one level, we all know that having life insurance is a vital safety net, but it's also important to remember that life insurance is beneficial for more reasons than just this. Life insurance coverage is there because so many milestones in life can come up unexpectedly. While only 60% of Americans have life insurance, sometimes it pays to remember why life insurance could make all the difference in life. It Helps With Debt. Many millions of Americans accumulate some form of debt, whether a mortgage or a student loan. When somebody dies before these outstanding debts are paid off, the money owed could be a financial burden on their estate and their loved ones. While not every item of unpaid debt is the responsibility of the estate's inheritors, they could be liable for paying the remaining balance. There are many cases where people without dependents could benefit from life insurance. For example, when a parent or guardian is a co-signer on a child's student loan. In this instance, taking out a life insurance policy could mean the child can cover the remaining debt should the parents pass away suddenly. It is expensive to die. Life Insurance can Help With End-of-Life Expenses When somebody dies, the family or loved ones may have to take on settling the affairs and planning a funeral, all while going through the grieving process. Including end-of-life expenses within an insurance policy could spare the loved ones more costs and reduce the stress. A funeral service in the United States can be between $7,000 and $10,000. Being designated on an insurance policy to set aside funds to deal with end-of-life expenses can make the process run more smoothly. It Provides Loved Ones a Financial Future. Debts can cause significant financial hardship in the worst-case scenario. Therefore, preparing for any future expenses can be very important, especially for people with dependants. Having life insurance can help bridge the income gap and provide extra support for added expenses if the parent passes away. If, for example, a parent passes away and the child harbored ambitions to go to college, this is expense parents need to contribute to. A death benefit in a life insurance policy can cover several expenses to contribute to a solid financial future for their loved ones. It Leaves an Inheritance. As we all work hard to make and save money, it's important to remember that for someone who passes away, they will want to pass on as much of his assets as possible, either to a loved one or to a charity. Life insurance is an excellent method to create an inheritance that is not taxed before they reach the beneficiaries. Life insurance is not just something that needs arranging. Still, it can make all the difference to somebody's future—so having a life insurance policy in place will make a significant difference, not just in death but in life. One of the first individuals to present and offer life insurance to consumers is a licensed life insurance producer. It is their job to determine a clients suitability and determine which life insurance policy is best for them. There are many types of Life insurance products that offer a wide range of protection. From Term Life insurance policies offering temporary coverage to permanent "whole life" insurance products that provide the consumer protection their entire lives. The licensed life insurance agent will discuss, review and present options that best fit their client's needs.