Insurance
Sold direct- otsemüük- by telephone or on the internet. This can be cheaper than insurance
bought over the counter from a broker or an agent.
Life insurance- called assurance- a way to save for the future. Will pay an agreed sum to
someone else, for example you husband or wife, if you die before a certain age. You can buy a
policy that pays a certain sum of specific date, suhch as when you retire from work.
Tax shelters- (As with pension plans, live insurance policies are tax shelteris or a way to
postponing payment of tax. You don´t have to pay income tax on life insurance premiums.
A lump sum- a single, large amount of money paid out when an insurance policy matures- will
be taxable.
Insurance companies have to invest the money they recieve from premiums. Like pension
funds, they are large isitutional investors that invest huge sum in securites, especially low-risk
government bonds.
Lloyd´s of London- the largest insurance market in the world
annaabi.ee 
