What are insurance terms? Well, that is exactly what we would be discussing here. If you are new to insurance, you might have heard some terms and don’t know what they mean. A lot of people don’t even know what insurance terms mean. These terms are very much in number and would not be having time to explain them one after the other. What I’ll do or you is to link you to a page where you would see a complete glossary of all the terms.
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Insurance terms are words or phrases that are usually used to classify an action or occurrence. Take into consideration the word “Accident”. An accident is an insurance term that classifies an unexpected event or circumstance. An accident is usually not deliberate. Still talking about these terms, they are often used in agreements. After knowing these terms, you don’t have to be confused about anything insurance-related. If you also have an insurance broker, these terms may also be used to communicate. This is just to show you the importance of these terms.
What is Insurance?
Insurance is a contract that is usually represented by a policy. In this policy, an individual or individual receives a financial reimbursement or protection against loss. There are different types of insurance and each has its own terms. Some terms are also general. Insurance policies are usually used to wedge off financial losses.
Life Insurance Terminology
I am sure that you already know what life insurance is all about. If you are starting a new family and want to keep providing for them even after death, then you should consider this type of insurance. Here are some of the terms you should know about.
- Insured: Being insured simply means you are covered by an insurance policy.
- Face Amount: A face amount is an amount that the insurance company would have to pay out until the death of the insured.
- Premiums: A premium is a monthly or annual amount that must be paid monthly or annually to have the insurance coverage.
- Primary Beneficiary: The primary beneficiary is the person or persons that are designated to receive the proceeds of the insurance after the death of the insured.
- Contingent Beneficiary: This is the person that is designated o receive the proceeds of the insurance if the primary beneficiary is no longer alive.
- Whole Life Coverage: This is the kind of insurance coverage that lasts as long as the insured is alive. This type of insurance uses the same premium rate throughout the life span of the policy.
- Term Life Coverage: This is the type of life insurance that lasts only for a period of time. The ending date would also be defined in the policy.
These are just some of the few terms related to life insurance.
The Terminology of Health Insurance
Health insurance is one of the simplest types of insurance you can get on the web today. The patient protection and ACA enables more American citizens to have access to quality and affordable health insurance. Here are some terms.
- Insured: This is a general term. It simply means the person being covered.
- Deductible: Unlike life insurance, this is the amount of money that you must pay out of your pocket for medical expenses before your insurance company starts making the payments.
- Premium: This is also a general term. It is the monthly or annual amount that you must pay to have insurance coverage.
- Co-payment: This is a flat fee that you must pay towards the cost of your medical visits. Your insurance provider would have to pay the remaining balance.
- Co-insurance: This is the amount of percentage that you must pay to share responsibility for your medical claims after meeting your annual deductible.
These are some of the terms.
The terminology of Auto Insurance
The requirements for this kind of insurance vary with state. Here are some of the terms that can be very helpful in understanding auto insurance.
- Insured: I am sure you know who an insured is. It is the person being covered.
- Deductible: This is the amount of money that you would have to pay from your pocket for damages sustained.
- Collision Coverage: This is a type of insurance coverage that pays for damages caused to your car from collision with objects.
- Comprehensive Coverage: Comprehensive coverage is the type of coverage that pays for the damages caused to your vehicle through other means. These means include theft, fire, vandalism, or other causes stated in the policy.
- Bodily Injury Coverage: This is the type of coverage that pays for your medical expenses and/or funeral costs of other individuals that are injured or killed in an accident you are liable for.
- Medical Payments Coverage: This is the type of insurance coverage that pays for the medical and funeral expenses of anyone covered under your insurance policy if an accident occurs, regardless of fault.
- Uninsured Motorist Coverage: This is the type of coverage that pays for injuries, including death that you and/or other occupants of your vehicle sustain due to collision with an uninsured driver who is at fault.
Note that these are just some of the terms. If you want a complete list of the insurance terms, click here.