Industrial life insurance

Industrial life insurance is a type of small whole life or endowment policy sold to working families from the late 1800s through much of the 20th century. An agent, often called a debit agent, visited homes to collect premiums weekly or monthly, sometimes just a few cents at a time. Death benefits were typically enough to pay for a funeral, and many policies were bought on children.

Because premiums were collected in person and policies were small, the cost per dollar of coverage was high compared with ordinary life insurance. The business later became known as home service insurance, and few companies sell it in its original form today. Modern burial insurance and final expense policies fill a similar role through agents, mail, phone and online sales.

Industrial policies still matter for two reasons. Many old policies were paid up and may still owe a benefit to families who have forgotten them, so a search can turn up money. And in the early 2000s, several insurers settled lawsuits and regulatory actions over charging Black policyholders higher premiums on these policies. To look for an old policy, use the The NAIC Life Insurance Policy Locator: how to use it or see how to find a lost life insurance policy.