Typically, insurance companies look to turn a profit. You pay for a policy. If something goes wrong, the company covers your loss. Lots and lots of people pay into the insurance company's pot. The firm then invests that money, looking to make the pot bigger. Some of the cash gets used to cover losses. Whatever's left over becomes profit.
There's a different model, though...one that has a similar operation, but without the profit part. In particular, it comes up in the Islamic concept of takaful. It's like non-profit insurance (with a bit of religion mixed in).
The takaful structure generally works like an insurance company. A bunch of people pay into a common fund. If one of them suffers a setback covered by the fund, they get some cash to take care of the problem. Meanwhile, the fund is invested in order to make the pot of money get bigger.
The difference from traditional insurance is that there's no overarching company taking a profit. And here's where the investment income sharing comes in.
The term "investment income sharing" applies to the profits earned by investing the funds compiled by the takaful. The added money that comes through investment gets shared among the people who paid into the fund. It's not owned by an insurance company. It's held in trust by the takaful organization for all its members...they each have claim on a share.
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Econ: What is Disposable Personal Income...1 Views
And finance Allah shmoop What is disposable personal income It's
not the pennies you throw into a dumpster because they're
not worth the extra weight in your pocket And it's
not one hundred dollar bills you usedto light your Saturday
night bonfires The term disposable personal income refers to the
amount of money you have left over after paying taxes
Your net pay the amount you have remaining Teo you
know spend however you want Well it's the fourteen of
the month payday You get the first of your bi
monthly paychecks Your salary is fifty two grand a year
In theory you should get two grand for each two
week pay period right You have twenty six of them
on to grant the thousand dollars a week roughly that
you're earning But in practice that's not what you get
to spend Some of the money comes out as taxes
The party here paycheck that you can actually deposit in
the bank on Lee comes to thirteen hundred thirty dollars
Yep you start with two grand six hundred seventy then
comes out as taxes Federal state county whatever And you're
left with thirteen thirty That number is your disposable income
will disposable personal income or D P I Is an
economic stat tracked by the U S Department of Commerce
It's part of a series of figures that gauge the
wealth of consumer spending at least the ability to spend
the more disposable income the more consumers have to spend
the more money to slosh around in the economy Well
of course Ah the amount of that disposable income you
actually get to have fun with you know used to
light bonfires and such Well that depends on how much
money you make out of the disposable personal income You
still have to pay for necessities you know like rent
and food and the Internet and frappuccinos You know the
basics If you're poor well that stuff takes up most
storm or than all your disposable income You get a
little raise and now you're disposable incomes three grand a
month Out of that you have to pay your basic
expenses right Your mortgages fifteen hundred bucks You spend five
hundred dollars a month on food You have utilities like
electricity and the Internet And you know all that stuff
comes to around two hundred bucks at another hundred bucks
for gas because you don't drive it Tesla at two
hundred bucks for your car payment because you bought an
expensive car Well you're already up to twenty five hundred
dollars in bills and you haven't even bought your first
Frappuccino What will you d'oh well by the end of
the month there isn't a whole lot left over after
that three grand you took in you know for clothes
or insulin or something well your cousin does a little
better he's a veterinary proctologist and pulls in ten thousand
dollars a month in disposable income you know those guys
make bank well his expenses are a little higher than
yours three grand a month mortgage payment thousands wait for
food three fifty for utilities two hundred for gas for
fifty for the car payment you know all told his
expenses come to five grand a month but that represents
only half his disposable income he still has another five
grand to go spend on trips to vegas our tickets
to hamilton or you know just save well your other
cousin is really doing well she's a famous tv chef
and she brings in a one hundred fifty grand a
month in disposable income Will her necessities are much more
expensive Fifty grand in mortgage on her mansion thirteen grand
a month for her household staff Five grand a month
for the top and food flown in You know fresh
still alive and kicking a grand for utilities Ten grand
for her fleet of car payments Eight hundred a month
for fresh cut rose petals to sprinkle around her bath
each morning Yeah and the two hundred dollars a month
she pays to her veterinary proctologist cousin to take care
of her cats Hemorrhoids All told eighty grand in monthly
expenses yet more than twice your yearly total disposable income
Yeah she has another seventy thousand dollars each month on
top of that amount which still needs to be disposed
of Maybe she'LL take her cat on a nice spa
vacation Tio let whiskers forget about his You know back
side issues for awhile Yeah we could only hope Yeah