Long before it became a policy on paper, life insurance began as a promise, a shared commitment to care for others in uncertain times. That promise has shaped thousands of years of history.
From Roman burial clubs to nonprofit associations like The Uniformed Services Benefit Association® (USBA®), the history of life insurance is more than just a timeline. It’s a powerful story of how people, especially those in high-risk roles like soldiers and sailors, have always looked for ways to safeguard those they care about.
Let’s trace that story through ancient civilizations, medieval brotherhoods, early American innovations, and into the present-day needs of military families.
Ancient Rome: The Origins of Financial Protection
It started with a problem as old as civilization: death left families vulnerable, emotionally and financially.
In ancient Rome, this challenge led to the creation of “collegia funeraticia,”1 or burial clubs. These were early mutual aid societies formed by soldiers, laborers, and even enslaved individuals. Each member contributed small sums regularly. When a member died, the group paid for funeral rites and sometimes provided financial support to surviving relatives.
In many ways, this was the earliest form of life insurance: a community stepping up to ensure no one was left behind. It’s no coincidence that many members were soldiers who understood the risks of service and the value of preparing for what might come next.
Early Support Systems Built on Brotherhood
By the Middle Ages, the idea of mutual protection had taken on a new form: the professional guild. These guilds were associations of craftsmen and tradespeople who pledged to support one another through all stages of life.
While they focused heavily on preserving trade standards and negotiating fair wages, they also served a deeper purpose. When a member died, the guild stepped in2. Funeral expenses were often covered, and surviving families received financial assistance. Some guilds arranged apprenticeships for sons or offered dowries for daughters to help maintain family stability.
These weren’t informal gestures of kindness; they were structured benefits funded through member dues, making them one of the earliest examples of organized financial protection.
The 1600s: Risk, Trade, and the Birth of Policy
As global trade exploded during the Age of Exploration, the dangers of long voyages, storms, piracy, and disease made financial protection more urgent than ever. Merchants and investors who financed these trips had the most to lose, and they began seeking ways to manage that risk.
This led to the rise of marine and life insurance in the 16th and 17th centuries. The earliest known life insurance policy was signed in 1583 in London. A man named William Gibbons was insured for a year—if he died within that time, a payout would be made to a beneficiary3.
The policy was short, simple, and expensive. But it marked the start of what we now recognize as modern life insurance.
These early policies were written for wealthy merchants, clergy, and other elites, not for sailors or laborers who faced the most significant physical risk. Instead, many workers and military members in the lower class couldn’t access this early protection.
19th Century America: Protection Meets Public Need
In the 1800s, as America expanded westward and industrialized, life insurance began to take hold among working-class families. But it wasn’t until the Civil War that the idea of financial protection truly entered the national conversation.
The war brought unimaginable loss. Widows and children were often left without any support, and government aid was inconsistent or nonexistent. In response, a growing number of mutual aid societies, fraternal organizations, and early insurance companies stepped in to help fill the gap. These groups pooled resources and offered basic policies to members, often designed to pay for funerals and provide small cash benefits to surviving spouses or children.
Unlike earlier systems in Europe, these American models were built on inclusion and expansion. The idea was simple but powerful: life insurance should be accessible, not exclusive. It became a symbol of responsibility and self-reliance, especially among veterans returning home.
By the late 1800s, many Civil War veterans had joined or formed organizations like the Grand Army of the Republic (GAR), which offered burial benefits and support to members’ families4. These weren’t just social clubs—they were lifelines for thousands navigating a changed nation.
This era laid the groundwork for modern group life insurance and helped normalize the idea of planning ahead for loved ones’ deaths. It also reinforced the role of community, an enduring theme in the history of life insurance and a reflection of the same values carried by today’s military families.
Modern Military Families: A Legacy of Coverage That Endures
From Roman burial clubs to today’s military households, the story of life insurance is one of resilience, responsibility, and care. While the tools have evolved, the promise remains the same: to help families recover from loss, rebuild, and move forward.
Modern military life brings unique and often unpredictable challenges. Frequent relocations, overseas deployments, and the transition to civilian life make financial planning more complicated—and more critical. For service members and their families, life insurance isn’t just a financial product; it’s a continuation of a timeless commitment: protecting the people you love, even after you’re gone.
Whether you’re just starting your career or preparing for retirement, the right life insurance policy offers more than just a payout. It provides peace of mind, continuity, and a quiet kind of leadership that lives on through the people you protect.
At USBA, we carry that legacy forward. With coverage designed specifically for those who serve, we help military families build security that lasts—through every move, every mission, and every moment in between.
Get a quote for coverage today using our online Quote Tool.
SOURCES CITED:
- “Burials in Ancient Rome.” International Catacomb Society. Accessed 8 July. 2025.
- Richardson, Gary. “Medieval Guilds.” EHnet. Accessed 8 July 2025.
- Fouse, L. G. “Policy Contracts in Life Insurance.” The Annals of the American Academy of Political and Social Science, vol. 26, 1905, pp. 29–48. JSTOR. Accessed 8 July 2025.
- Smith, Albert, and Will Elsbury. “Grand Army of the Republic and Kindred Societies: A Guide to Resources in the General Collections of the Library of Congress: Introduction.” Introduction - Grand Army of the Republic and Kindred Societies: A Guide to Resources in the General Collections of the Library of Congress - Research Guides at Library of Congress, 29 January 2021.