The insurance industry and rent-seeking
Certain insurance products and practices have been described as by critics.[ ] That is, some insurance products or practices are useful primarily because of legal benefits, such as reducing taxes, as opposed to providing protection against risks of adverse events. Under United States tax law, for example, most owners of and can invest their premium payments in the stock market and defer or eliminate paying any taxes on their investments until withdrawals are made. Sometimes this tax deferral is the only reason people use these products.[ ] Another example is the legal infrastructure which allows life insurance to be held in an irrevocable trust which is used to pay an while the proceeds themselves are immune from the estate tax.
Religious concerns
Muslim scholars have varying opinions about insurance. Insurance policies that earn interest are generally considered to be a form of ( ) and some consider even policies that do not earn interest to be a form of gharar ( ). Some argue that gharar is not present due to the actuarial science behind the underwriting.
Jewish rabbinical scholars also have expressed reservations regarding insurance as an avoidance of God's will but most find it acceptable in moderation.
Some Christians believe insurance represents a lack of faith and there is a long history of resistance to commercial insurance in communities ( , , , ) but many participate in community-based self-insurance programs that spread risk within their communities.
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