Understanding Insurance Vocabulary

Provides payments for both liability and property insurance on a vehicle.

• Homeowners insurance

• Renters insurance

• Automobile insurance

Someone who receives money if an insured person dies.

• spouse

• child

• beneficiary

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury.

• claim

• request

• complaint

Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid

• deductible

• coverage

• co-insurance

The risks covered and amount of money paid for losses under an insurance policy.

• deductible

• risk

• coverage

The out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed the to the loss.

• co-insurance

• deductible

• claim

Someone who relies on someone else for income and care.

• child

• parent

• dependent

Provides payment to replace earnings during times when workers cannot work due to illness or injury.

• disability insurance

• automobile insurance

• health insurance

Cash set aside that can be used to cover the costs of unexpected expenses.

• emergency savings

• credit card

• fund money

Employers offer these to employees to add value in the form of products or services that add extra value for employees beyond earned wages.

• employee benefits

• employee dependent

• employee claim