Insurance is an agreement to pay a certain sum of money to compensate for the loss resulting from some contingent event, in consideration i nsu rance of an immediate cash payment or a series Defined of payments. The loss insured against may happen
soon, may be long deferred, or may never happen. Life insurance is effected by a contract between two parties, the insurer and the insured, in which a determined sum is agreed to be paid to Lifelnsur a third party, the beneficiary, upon the ance * happening of death, on condition that the second party, the insured, pays certain sums to the first party, the insurer. It is an agreement to pay a certain sum in the future by the insurer in consideration of the payment or payments of a certain other
sum by the insured. It is a form of social cooperation and had its real origin in the wants of the family. It is a method of distributing the effects of losses. It is a mutual agreement among many to assume the burdens suddenly falling upon a few.
It is also a method of capitalizing future time and energy against premature death. It is therefore based on the fact that a single life has either potential or actual value. From this description of insurance it is evident that there could be no onsiderable development of insurance until society had progressed to Lifeinsur- the stage in which (a) the family was definitely established with social obligation and rights, and (6) the individual as an individual was valued as a member of society. Until the definite sex relations of the monogamous family were established, there could be fixed no definite obligations upon the different members of the family organization. However, in the monogamous family organization women and children assumed a position at once more definite and important than in the previous family organization. Affection and a sense of responsibility both operated to place definitely upon the husband the duty of caring for his wife and children. To a less degree only did he feel the obligation of caring for his parents and those of his wife. Thus the possible widow and orphan and infirm parent became a source of solicitude for the husband, who was urged by the definite family bond to make provision from his labor for their care and maintenance.