History of Life insurance in Timeline

Life insurance is a contract where an insurer pays a beneficiary a sum of money upon the death of the insured. Some policies also cover events like terminal or critical illnesses. The policyholder pays premiums, either regularly or as a lump sum. Benefits can include funeral expenses. It serves as a financial safety net for loved ones, providing funds to cover living expenses, debts, and other financial obligations after the insured's death.

1936: ITAA 1936, Section 279

Reference made to ITAA 1936, Section 279 regarding insurance premium paid by the superannuation fund claimed by the fund as a deduction to reduce the 15% tax on contributions and earnings.

1957: Liberty National Life v. Weldon

In 1957, an insurance company that sold a policy to a purchaser with no insurable interest, who later murdered the insured for the insurance proceeds, was found liable in court for contributing to the wrongful death of the victim in the case of Liberty National Life v. Weldon, 267 Ala.171.

1961: Income Tax Act, 1961

According to section 80C of the Income Tax Act, in 1961 premiums paid towards a valid life insurance policy could be exempted from taxable income, along with other financial instruments, with a maximum exemption of INR 150,000.

1975: SOA 1975-80 Basic Select & Ultimate tables

In 1975, The SOA 1975-80 Basic Select & Ultimate tables were typical reference points.

March 1984: Qualifying policies issued prior to 14 March 1984

Qualifying policies issued prior to 14 March 1984 still attract LAPR (Life Assurance Premium Relief) at 15%.

2001: 2001 VBT and 2001 CSO tables published

The 2001 VBT and 2001 CSO tables were published in 2001, and included mortality tables for smokers and non-smokers, as well as separate tables for preferred classes.

2005: Lower rate of liability for policyholders 2005-06

In 2005-06, all UK insurers paid a special rate of corporation tax on the profits from their life book, which was deemed as meeting the lower rate (20%) of liability for policyholders.

April 2006: Pension term assurance became widely available in the UK

From April 2006, pension term assurance became widely available in the UK, with most UK insurers adopting the name "life insurance with tax relief" for the product.

December 2006: Withdrawal of the scheme in December 2006

Chancellor Gordon Brown announced the withdrawal of the pension term assurance scheme in his pre-budget announcement on 6 December 2006.

2006: Documented case in Los Angeles in 2006

In 2006, there was a documented case in Los Angeles where two elderly women were accused of taking in homeless men, assisting them in taking out life insurance policies, and then allegedly having them killed.

April 17, 2016: Report by Lesley Stahl on 60 Minutes

On April 17, 2016, a report by Lesley Stahl on 60 Minutes claimed that life insurance companies do not pay significant numbers of beneficiaries because many people named as beneficiaries never submit claims, and are unaware that any benefit exists to be claimed, though the insurance companies have full knowledge.