industrial life assurance

A life assurance policy, usually for a small amount, the premiums for which are paid on a regular basis (weekly or monthly) and collected by an agent of the assurance company, who calls at the policyholder's home. Records of the premium payments are kept in a book, which - together with the policy document - has to be produced to make a claim. This type of assurance began in industrial areas (hence its name), where small weekly policies were purchased to help pay the funeral expenses of the policyholder. This type of insurance is now more widely known as home service assurance. It is fast becoming obsolete, owing to its high costs and low revenues.