Insurance

and
Taxes
Insurance
-It is a means of protection from financial
loss. It is a form of risk management,
primarily used to hedge against the risk of
contingent or uncertain loss. An entity
which provides insurance is known as an
insurer
 Four Types of Insurance

LIFE HEALTH LONG-TERM AUTO

INSURANCE INSURANCE DISABILITY INSURANCE
COVERAGE
 What is the role of
INSURANCE in society?
insurance plays a crucial role in
alleviating people's fear of sudden
misfortune by metigating loss through
services and financial compensation
Taxation -

Refers to the practice of a

government collecting money from its
citizens to pay for public services
Purpose of taxes
Taxation, imposition of compulsory levies on
individuals or entities by governments. Taxes
are levied in almost every country of the
world, primarily to raise revenue for
government expenditures, although they
serve other purposes as well.
What are tax Benefits?
1. Saving tax with
deductions
The most common type of tax benefit
comes in the form of a tax deduction.
When you claim a tax deduction, it
reduces the amount of your income
that is subject to tax.
 What are tax Benefits?
2. Excluding income
from income tax
An exclusion from tax provides the
ultimate tax benefit because the
income never ends up on your tax
return, and if it does, it generally
comes off in another section of your
return.
What are tax Benefits?
3. Claiming tax
credits
A tax credit generally has more tax-
savings potential than a deduction as
it provides a dollar-for-dollar
reduction in the amount of income tax
you owe rather than merely reducing
the amount of income subject to tax.
What are tax Benefits?
4. Reducing income
tax with capital
losses
Losing money is never a pleasant
experience. However, the one
advantage to a loss is that it may
provide you with a tax-reducing
benefit