Insurance: The Pound Of Cure

“An ounce of prevention is worth a pound of cure” to Great Ben!
(Benjamin Franklin, 1736)

Most people know that Benjamin Franklin discovered the power of lightning and invented the lightning rod – remember that image of him flying a kite in a thunderstorm with a key dangling from the string?

In addition to being an inventor, Benjamin Franklin was one of the Founding Fathers whose signature is prominent on the Declaration of Independence, the signing of which is celebrated on July 4th – Independence Day. But did you know that he also founded the very first property fire insurance company in the 13 American colonies, well before the signing of the Declaration?

The Philadelphia Contributionship gathered signatures from over 70 subscribers, who agreed to equally share “in the losses as well as the gains” from property fire accidents. Though it operates differently now, the Contributionship still does insurance business today.

Benjamin Franklin also advised the residents of fire-prone Philadelphia to take simple actions like keeping their fireplaces clean and removing debris and flammable items from the hearth. He worked with fire-fighting companies to implement building codes that required the use of better building materials and construction techniques to help prevent fires.

Later, people started to turn to insurance coverage not only for protection from fire loss, but also for end-of-life planning. Although life insurance wasn’t available in this country during Franklin's time (the 1700s), it became very popular in the 1800s with large, close-knit families. Why? Families knew their parish churches would help support and care for them if their primary breadwinner was disabled or died. While they were reluctant to purchase life insurance with family members as direct beneficiaries, they were more enthusiastic about benefiting their churches.

Now, well into the 21st century, our understanding of the benefits of insurance to help maintain financial independence has evolved. We are encouraged to purchase all types of insurance including, property, life, disability, and long-term care coverage, for ourselves, our families, and our businesses.

Even if you don’t own a business or have a family who depends on you financially, insurance is a terrific way to ensure your independence while protecting your income and assets for yourself and your beneficiaries, whomever they may be – family or charities or any other worthwhile institution!

Call me soon, or have me come talk with a group you are connected with to discuss and learn more about your personal financial independence!

“Franklin’s Philadelphia: The Philadelphia Contributionship.” Independence Hall Association, www.ushistory.org/franklin/philadelphia/insurance.htm. Accessed 26 June 2023.