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: Medical Expense, which indemnifies an insured for hospital, physician, and related expenses; 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.