[edit] Disability
* Disability insurance policies provide financial support in case the insured is unable to work due to illness or accident off. It provides support for the monthly payment of such obligations as mortgages and credit cards.
* WAO leaves overhead to business owners to cover the overhead costs of their business, while the ability to work.
* Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often as a supplement to life insurance.
* Workers’ compensation insurance replaces all or part of the workers the wages lost and accompanying medical costs resulting from work-related injuries.
[edit] Accident
Accident insurance insures against accidents, not necessarily tied to a particular property.
Main article: Accident
* Crime insurance is a form of casualty insurance that the insured against losses resulting from criminal acts of third parties. For example, a company can obtain crime insurance to cover theft and embezzlement.
* Political risk insurance is a form of accident that can be taken from transactions with companies in countries where there is a risk that revolution or other political conditions will result in the loss.
[edit] Life
Main article: Life
Life insurance provides benefits to the deceased’s family or other beneficiary, the income of the insured person, family, funeral, burial and other final expenses. Life insurance is often the choice of the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity.
Annuities for a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same kind of expertise to the actuarial and investment management requires a life. Annuities and pensions paid by the benefit for life are sometimes regarded as insurance against the possibility that retirees will survive their financial resources. In this sense, life insurance, and actuarial point of view is the mirror image of life.
Certain life insurance contracts accumulate cash values that can be used for the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or sell real estate, if necessary.
In many countries, such as the U.S. and the UK, tax law, interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient way of storing as protection in case of premature mortality.
In the U.S., the tax on interest income from life insurance and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low yield. This depends on the insurance, the type of policy and other variables (mortality, market return, etc.). In addition, other income tax saving vehicles (eg IRAS, 401 (k) plans, Roth IRAS) are better alternatives for value accumulation.
