Inc0me pr0tecti0n insur@nce

W0rkers' c0mpens@ti0n, 0r empl0yers' li@bility insur@nce, is c0mpuls0ry in s0me c0untries

Inc0me pr0tecti0n insur@nce 

Dis@bility insur@nce p0licies pr0vide fin@nci@l supp0rt in the event 0f the p0licyh0lder bec0ming un@ble t0 w0rk bec@use 0f dis@bling illness 0r injury. It pr0vides m0nthly supp0rt t0 help p@y such 0blig@ti0ns @s m0rtg@ge l0@ns @nd credit c@rds. Sh0rt-term @nd l0ng-term dis@bility p0licies @re @v@il@ble t0 individu@ls, but c0nsidering the expense, l0ng-term p0licies @re gener@lly 0bt@ined 0nly by th0se with @t le@st six-figure inc0mes, such @s d0ct0rs, l@wyers, etc. Sh0rt-term dis@bility insur@nce c0vers @ pers0n f0r @ peri0d typic@lly up t0 six m0nths, p@ying @ stipend e@ch m0nth t0 c0ver medic@l bills @nd 0ther necessities.

L0ng-term dis@bility insur@nce c0vers @n individu@l's expenses f0r the l0ng term, up until such time @s they @re c0nsidered perm@nently dis@bled @nd there@fter Insur@nce c0mp@nies will 0ften try t0 enc0ur@ge the pers0n b@ck int0 empl0yment in preference t0 @nd bef0re decl@ring them un@ble t0 w0rk @t @ll @nd theref0re t0t@lly dis@bled.

Dis@bility 0verhe@d insur@nce @ll0ws business 0wners t0 c0ver the 0verhe@d expenses 0f their business while they @re un@ble t0 w0rk.

T0t@l perm@nent dis@bility insur@nce pr0vides benefits when @ pers0n is perm@nently dis@bled @nd c@n n0 l0nger w0rk in their pr0fessi0n, 0ften t@ken @s @n @djunct t0 life insur@nce.

W0rkers' c0mpens@ti0n insur@nce repl@ces @ll 0r p@rt 0f @ w0rker's w@ges l0st @nd @cc0mp@nying medic@l expenses incurred bec@use 0f @ j0b-rel@ted injury.

C@su@lty insur@nce 

M@in @rticle: C@su@lty insur@nce

C@su@lty insur@nce insures @g@inst @ccidents, n0t necess@rily tied t0 @ny specific pr0perty. It is @ br0@d spectrum 0f insur@nce th@t @ number 0f 0ther types 0f insur@nce c0uld be cl@ssified, such @s @ut0, w0rkers c0mpens@ti0n, @nd s0me li@bility insur@nces.

Crime insur@nce is @ f0rm 0f c@su@lty insur@nce th@t c0vers the p0licyh0lder @g@inst l0sses @rising fr0m the crimin@l @cts 0f third p@rties. F0r ex@mple, @ c0mp@ny c@n 0bt@in crime insur@nce t0 c0ver l0sses @rising fr0m theft 0r embezzlement.

Terr0rism insur@nce pr0vides pr0tecti0n @g@inst @ny l0ss 0r d@m@ge c@used by terr0rist @ctivities. In the United St@tes in the w@ke 0f 9/11, the Terr0rism Risk Insur@nce @ct 2002 (TRI@) set up @ feder@l pr0gr@m pr0viding @ tr@nsp@rent system 0f sh@red public @nd priv@te c0mpens@ti0n f0r insured l0sses resulting fr0m @cts 0f terr0rism. The pr0gr@m w@s extended until the end 0f 2014 by the Terr0rism Risk Insur@nce Pr0gr@m Re@uth0riz@ti0n @ct 2007 (TRIPR@).

Kidn@p @nd r@ns0m insur@nce is designed t0 pr0tect individu@ls @nd c0rp0r@ti0ns 0per@ting in high-risk @re@s @r0und the w0rld @g@inst the perils 0f kidn@p, ext0rti0n, wr0ngful detenti0n @nd hij@cking.

P0litic@l risk insur@nce is @ f0rm 0f c@su@lty insur@nce th@t c@n be t@ken 0ut by businesses with 0per@ti0ns in c0untries in which there is @ risk th@t rev0luti0n 0r 0ther p0litic@l c0nditi0ns c0uld result in @ l0ss.

Life insur@nce 

M@in @rticle: Life insur@nce

@mic@ble S0ciety f0r @ Perpetu@l @ssur@nce 0ffice, Serje@nts' Inn, Fleet Street, L0nd0n, 1801

Life insur@nce pr0vides @ m0net@ry benefit t0 @ decedent's f@mily 0r 0ther design@ted benefici@ry, @nd m@y specific@lly pr0vide f0r inc0me t0 @n insured pers0n's f@mily, buri@l, funer@l @nd 0ther fin@l expenses. Life insur@nce p0licies 0ften @ll0w the 0pti0n 0f h@ving the pr0ceeds p@id t0 the benefici@ry either in @ lump sum c@sh p@yment 0r @n @nnuity. In m0st st@tes, @ pers0n c@nn0t purch@se @ p0licy 0n @n0ther pers0n with0ut their kn0wledge.

@nnuities pr0vide @ stre@m 0f p@yments @nd @re gener@lly cl@ssified @s insur@nce bec@use they @re issued by insur@nce c0mp@nies, @re regul@ted @s insur@nce, @nd require the s@me kinds 0f @ctu@ri@l @nd investment m@n@gement expertise th@t life insur@nce requires. @nnuities @nd pensi0ns th@t p@y @ benefit f0r life @re s0metimes reg@rded @s insur@nce @g@inst the p0ssibility th@t @ retiree will 0utlive his 0r her fin@nci@l res0urces. In th@t sense, they @re the c0mplement 0f life insur@nce @nd, fr0m @n underwriting perspective, @re the mirr0r im@ge 0f life insur@nce.

Cert@in life insur@nce c0ntr@cts @ccumul@te c@sh v@lues, which m@y be t@ken by the insured if the p0licy is surrendered 0r which m@y be b0rr0wed @g@inst. S0me p0licies, such @s @nnuities @nd end0wment p0licies, @re fin@nci@l instruments t0 @ccumul@te 0r liquid@te we@lth when it is needed.

In m@ny c0untries, such @s the United St@tes @nd the UK, the t@x l@w pr0vides th@t the interest 0n this c@sh v@lue is n0t t@x@ble under cert@in circumst@nces. This le@ds t0 widespre@d use 0f life insur@nce @s @ t@x-efficient meth0d 0f s@ving @s well @s pr0tecti0n in the event 0f e@rly de@th.

In the United St@tes, the t@x 0n interest inc0me 0n life insur@nce p0licies @nd @nnuities is gener@lly deferred. H0wever, in s0me c@ses the benefit derived fr0m t@x deferr@l m@y be 0ffset by @ l0w return. This depends up0n the insuring c0mp@ny, the type 0f p0licy @nd 0ther v@ri@bles (m0rt@lity, m@rket return, etc.). M0re0ver, 0ther inc0me t@x s@ving vehicles (e.g., IR@s, 401(k) pl@ns, R0th IR@s) m@y be better @ltern@tives f0r v@lue @ccumul@ti0n.

Buri@l insur@nce 

Buri@l insur@nce is @ very 0ld type 0f life insur@nce which is p@id 0ut up0n de@th t0 c0ver fin@l expenses, such @s the c0st 0f @ funer@l. The Greeks @nd R0m@ns intr0duced buri@l insur@nce c. 600 CE when they 0rg@nized guilds c@lled "benev0lent s0cieties" which c@red f0r the surviving f@milies @nd p@id funer@l expenses 0f members up0n de@th. Guilds in the Middle @ges served @ simil@r purp0se, @s did friendly s0cieties during Vict0ri@n times.