What are the different insurance deductions?
There are five different classes of insurance deductions: life, health, property, purchase, and risk. Insurance is a financial instrument purchased to provide financial coverage in the event of a specific event. Relatively small payments are made over a period of time to an insurance company. In exchange, the insurance company provides a promise to pay money to the policy holder if required. Life insurance is designed to temporarily replace your income in the event of your death. The insurance deductions are taken from your bank account or payroll. Upon your death, a regular payment or annuity is payable to your beneficiaries. Alternately, a lump sum payment is made. Health insurance deductions are usually taken from your payroll. The purpose of the deductions is to allow the health insurance company to provide coverage for medical services and products. The types of items covered and service providers are determined by the insurance company. Property insurance covers your home, busine
