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Some useful information about insurances, policies and programs:

An indemnity policy will not pay claims until the insured has paid out of pocket to some third party; i.e. a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an indemnity policy the homeowner would have to come up with the $10,000 to pay for the visitors fall and then would be indemnified by the insurance carrier for the out of pocket costs (the $10,000).

In many countries, such as the U.S. and the UK, the tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.



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