An explanation of social assistance, pension schemes, insurance schemes and similar concepts

There are overlaps and interrelationships between the terms social benefits, social assistance, social security, social insurance, pension schemes, annuities, life insurance, non-life insurance, accident insurance, term insurance and the like. The terms are not necessarily self-explanatory and are not always used consistently, especially when comparisons are made between countries with different institutional structures. The concepts underlying the terms are integral to some of the basic tools used by governments to assist those experiencing or likely to experience economic disadvantage, and by households to minimise their economic risks. It is essential to understand the concepts and employ a consistent terminology to describe them when undertaking micro analysis.