Insurance Terms
If you are going to buy insurance, then you need
to speak the lingo of the insurance industry. Most people have
heard the general terms of insurance many times over, but they also
do not possess the basic understanding of many of those terms to
properly use them in a conversation. Here is a list of the ten most
commonly used insurance terms, and an understanding of what each
one means.
Premium – The insurance premium is the periodic cost paid by the insured to the insurer to maintain the coverage offered by the policy. The frequency of payments is established by the insurer, and it is commonly a monthly payment or a quarterly payment.
Deductible – A deductible is the amount of money the insured is responsible for before the insurer will start to pay based on the terms of the policy. For example if a health insurance policy has a $500 deductible and then 80% coverage, then the insured would be responsible for all charges up to $500 and then the insured would only pay 20% of all charges after the deductible is paid.
Indemnify – This is a commonly used insurance term that many people do not completely understand. An insurance company promises to indemnify the insured based on the terms of the policy. All it means is that the company promises to pay the insured and any charges the insured compiles, based on the terms of the policy.
Whole Life Policy – This is a life insurance policy that remains in effect for as long as the insured pays their premiums.
Term Policy – This is a life insurance policy that is only in effect for a set amount of time. Many people use a term life insurance policy to provide protection to their families on large investments.
Adjuster – An insurance adjuster is the person that works in the field, and establishes a cost for losses incurred by the insured.
Declaration – This is the part of the insurance policy that lists the name of the insured, the terms of the policy, and any other pertinent information regarding the coverage offered by the policy.
Underwriter – This is the person, or group of people, within the insurance company that examine the potential risk of an policy and determine if the company is willing to take on the policy or not. Once they have determined that they will accept a policy, the underwriter then establishes the premium for the policy.
Beneficiary – The person, or persons, determined to receive the benefits of the insurance policy should something happen to the insured.
Binder – This is a temporary declaration of insurance that is traditionally given by the insurance company prior to issuing an actual policy.
Further polish informations can be found here.
Premium – The insurance premium is the periodic cost paid by the insured to the insurer to maintain the coverage offered by the policy. The frequency of payments is established by the insurer, and it is commonly a monthly payment or a quarterly payment.
Deductible – A deductible is the amount of money the insured is responsible for before the insurer will start to pay based on the terms of the policy. For example if a health insurance policy has a $500 deductible and then 80% coverage, then the insured would be responsible for all charges up to $500 and then the insured would only pay 20% of all charges after the deductible is paid.
Indemnify – This is a commonly used insurance term that many people do not completely understand. An insurance company promises to indemnify the insured based on the terms of the policy. All it means is that the company promises to pay the insured and any charges the insured compiles, based on the terms of the policy.
Whole Life Policy – This is a life insurance policy that remains in effect for as long as the insured pays their premiums.
Term Policy – This is a life insurance policy that is only in effect for a set amount of time. Many people use a term life insurance policy to provide protection to their families on large investments.
Adjuster – An insurance adjuster is the person that works in the field, and establishes a cost for losses incurred by the insured.
Declaration – This is the part of the insurance policy that lists the name of the insured, the terms of the policy, and any other pertinent information regarding the coverage offered by the policy.
Underwriter – This is the person, or group of people, within the insurance company that examine the potential risk of an policy and determine if the company is willing to take on the policy or not. Once they have determined that they will accept a policy, the underwriter then establishes the premium for the policy.
Beneficiary – The person, or persons, determined to receive the benefits of the insurance policy should something happen to the insured.
Binder – This is a temporary declaration of insurance that is traditionally given by the insurance company prior to issuing an actual policy.
Further polish informations can be found here.