Unit 7: Insurance – Lessons 1~2, Terminology

Front

Beneficiary

Back

The person or entity that is legally designated to receive the benefits from a life insurance or a will after the death of the insured.

Front

Cash value

Back

Money equal to the cost of replacing lost, stolen, or damaged property after depreciation.

Front

Claim

Back

Request for the insurance company to pay for something the insurance covers, such as a car accident, a house fire or a visit to the emergency room.

Front

Deductible

Back

The amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest.

Front

Disability Insurance

Back

A loan-payment protection plan that offers relief from financial burdens upon involuntary disability, loss of life, or involuntary unemployment.

Front

Insurance

Back

An arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk.

Front

Insurance Agent

Back

The person who sells, solicits, or negotiates insurance on behalf of a client for compensation.

Front

Insurance Carrier

Back

The issuer of the policy and the one who charges the premium, pays for losses and claims; also called insurance company and insurance provider.

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Insurance Policy

Back

A contract between the individual and the insurer, specifying the terms of the insurance arrangements.

Front

Policy Holder

Back

A consumer who purchases the policy.