Insurance Vocabulary Part I

Amount you pay per year for insurance before your plan benefits take effect

• Cash value

• Annual deductible

• Co-pay

• Deductible

When an insurance company is required to provide coverage for by state insurance law.Regulators deal with assigned risks by requiring insurers to pool together to provide coverage

• Comprehensive

• Insurance

• Assigned risk pool

• Insurance Benefit

Contract between you and the insurance company. Covers you while driving. Provides property, liability, and medical coverage

• Automobile insurance

• Collision insurance

• Disability insurance

• Long-term care insurance

A person who derives advantage from something, especially a trust, will, or life insurance policy

• Benefit period

• Claim

• Cash value

• Beneficiary

Length of time during which a policyholder or their dependents may file and receive payment for a covered hazard.

• Cash value

• Deductible

• Benefit period

• Death benefit

Cash amount offered to the policy owner by the issuing life carrier upon cancellation of the contract

• Claim

• Insurance

• Cash value

• Deductible

A formal request to an insurance company for coverage or compensation for a covered loss or policy event

• Beneficiary

• Co-pay

• Claim

• Death benefit

Auto coverage that reimburses the insured for damage sustained to their personal automobile, due to the fault of the insured driver

• Collision insurance

• Automobile insurance

• Annual deductible

• Comprehensive

The practice of comparing the price of products or services from different vendors before buying

• Comparison shopping

• Disability insurance

• Deductible

• Insurance Benefit

A payment made by a beneficiary (especially for health services) in addition to that made by an insurer

• Deductible

• Claim

• Co-pay

• Cash value