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Insurance Vocabulary You should Know

Insurance Vocabulary You should Know

The world of insurance can be a confusing one for those who don’t fully understand it. There is a lot of terminology which is used at every turn, as well as changing rates, different providers, and some factors of the experience which are going to be applicable to some people but no to others.

 

As such, it is beneficial to know some of the most basic terms as well as what they mean. Here are some terms to expand your vocabulary with:

 

Premium- The amount paid from moth to moth in order to keep your insurance policy active. As long as you pay, you get the benefits of the policy.

Deductible- A specified amount of money that you must pay before your provider will pay for a claim. For example, car repair often involves meeting the deductible before a fully covered repair will be covered.

Beneficiary- A person who gains from an insurance policy.

Claim- Request for payment based on the protections and benefits set forth in the insurance policy.

Risk- The risk of the person either not being able to pay for their policy, or living a lifestyle where additional coverage costs are going to be needed in order to take care of them.

 

Knowing these terms is a great base to expand outward from. It takes a little getting used to, but you’ll be up to speed in no time once you get your foot in the door. Be sure to evaluate your insurance needs and select a great provider to give you coverage.