SEARCH THE BUSINESS GLOSSARY
five primary sectors of insurance coverage. Their purposes are:
- life insurance -provides income to a beneficiary in the event of the death of the insured.
- health insurance -provides two types of coverage: (a) Medical Expense, which indemnifies an insured for hospital, physician, and related expenses; (b) Disability Income, which provides a source of income for an insured in the event of partial or total disability. It is generally felt that this source of income should approximate at least 50% of earnings prior to a disability.
- annuity -provides monthly income to an annuitant for life.
- property insurance -indemnifies an insured for damages or destruction of property.
- liability insurance -covers damages on behalf of an insured who becomes legally obligated to pay because of actual (or alleged) negligent acts and omissions.