VOCABULARY: Insurance

Premium

• The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time.

• A one-time payment made to an insurer for a specific service.

• The total value of an insurance policy at the time of purchase.

• The amount an insurer pays to a policyholder in case of a claim.

Copay

• A variable amount based on the type of treatment received

• A fixed dollar amount that you agree to pay each time you receive medical treatment, such as a doctor's visit or prescription

• A percentage of the total medical bill that you are responsible for

• An amount that is paid only once a year for all medical services

Insurance Policy

• A type of investment that guarantees high returns

• A contract in which an individual or entity receives financial protection or reimbursement against losses

• A legal document that outlines the terms of a loan

• A policy that provides tax benefits to the policyholder

Coverage Limit

• The maximum amount an insurance company will pay if you file a claim

• The minimum amount of coverage required by law

• The total number of claims you can file in a year

• The amount you pay out of pocket before insurance kicks in

Coinsurance

• A fixed amount you pay for a medical service regardless of the total cost

• A percentage you pay each time you receive medical treatment after you’ve paid your deductible

• The total amount you pay for all medical services in a year

• A fee charged by the insurance company for processing a claim

Minimum Liability Limit

• The highest amount of auto insurance coverage one can have to be legally allowed to drive in each state

• The lowest amount of auto insurance coverage one can have to be legally allowed to drive in each state

• The average amount of auto insurance coverage required by most states

• The optional amount of auto insurance coverage one can choose to have

Deductible

• The total amount your insurance will cover for a claim

• The amount of money you agree to pay towards your losses before your insurance coverage will begin paying

• The percentage of the claim you are responsible for after coverage

• The fixed fee you pay for each doctor's visit

Insurance

• An agreement where you make regular payments to a company and the company promises to pay you money if you suffer a specified injury, illness, loss, etc.

• A type of investment where you buy shares in a company and hope for profit.

• A legal contract that allows you to borrow money from a bank with interest.

• A service that provides free medical care to individuals regardless of their financial situation.

Extended Warranty

• A type of insurance that covers accidental damage to devices

• An additional form of protection that can be purchased to extend/enhance a manufacturer's warranty on consumer goods, like phones and electronics

• A service that provides free repairs for life

• A warranty that only covers software issues

Quote

• A statement of the total cost of a service.

• An estimate of what premium you would pay for a certain insurance coverage plan.

• A detailed report of past insurance claims.

• A summary of insurance policy benefits.