List of common insurance terms
- Premium: The amount you pay for your insurance policy, typically on a regular basis (e.g., monthly or annually).
- Deductible: The amount you must pay out of pocket before your insurance coverage kicks in.
- Policyholder: The person or entity who owns an insurance policy.
- Coverage: The specific protection or benefits provided by an insurance policy.
- Policy: The formal written contract between the insured (policyholder) and the insurer (insurance company).
- Claim: A formal request to your insurance company to pay for a covered loss or event.
- Beneficiary: The person or entity designated to receive the benefits from an insurance policy, such as in a life insurance policy.
- Underwriting: The process insurers use to evaluate and determine the risk associated with insuring a person or entity.
- Exclusion: Specific conditions or events that are not covered by an insurance policy.
- Rider: An optional addition to an insurance policy that provides extra coverage for specific circumstances.
- Coverage Limit: The maximum amount your insurance policy will pay for a covered loss or event.
- Policy Term: The duration for which an insurance policy is in effect.
- Premium Rate: The cost of insurance per unit of coverage, often calculated on a per-month or per-year basis.
- Policyholder's Obligation: The responsibilities and requirements of the policyholder, such as paying premiums on time.
- Loss: The financial setback or damage that triggers an insurance claim.
- Liability: Legal responsibility for an event or damage that results in injury or loss to another party.
- No-Claims Bonus: A discount or reduction in premiums for policyholders who do not file claims during a specified period.
- Copayment: A fixed amount you pay for certain covered services or prescriptions, usually at the time of service.
- Co-Insurance: A cost-sharing arrangement in which the policyholder pays a percentage of covered expenses, while the insurer pays the rest.
- Grace Period: A specified time period after a premium due date during which the policy remains in force without penalty.
- Indemnity: The principle that insurance is meant to restore the policyholder to the same financial position they were in before a covered loss.
- Umbrella Insurance: Extra liability insurance that provides additional coverage beyond the limits of your primary policies.
- Risk Assessment: The process of evaluating the potential risks associated with insuring a person, property, or entity.
- Claim Adjuster: A representative of the insurance company who assesses and processes insurance claims.
- Insurance Broker: A professional who helps individuals and businesses find suitable insurance policies from various insurers.
- Insurance Agent: A representative of an insurance company who sells and services insurance policies.
- Subrogation: The process by which an insurer seeks reimbursement from a third party for a claim they have already paid.
- In-force Policy: A policy that is active and has not expired or been canceled.
- Renewal: The process of extending or continuing an insurance policy beyond its original term.
- Term Life Insurance: A type of life insurance that provides coverage for a specified term (e.g., 10, 20, or 30 years).