Leah Kelvin
Active member
To make good choices about buying insurance plans, customers should know what insurance terms mean. Some of the key ones are:
1. Premium: Money paid to the insurer in exchange for coverage, usually every month, three months, six or twelve months.
2. Deductible: Amounts paid by policyholders out of pocket before their insurance coverage kicks in.
3. Policy Limit: This is the highest amount that a policy can provide as coverage.
4. Coverage: Specific insurances and benefits given under a particular policy.
5. Claim: Formal demand for payment due to damage or loss from an insured event.
6. Exclusion: It spells out what is not covered in a given policy such exclusions differ depending upon the type of policy one may have and the insurer they are dealing with. To clearly understand what these terms mean in relation to consumer insurance policies and enable them make informed decisions it’s crucial for consumers to be conversant with them.
The process by which premiums and coverage conditions are determined by an insurance firm through evaluating risk is referred to as underwriting; this includes considering factors like age, health condition as well as credit history. The person who will receive money from an insurance company if someone dies or becomes disabled is known as a beneficiary while riders on policies refer to additional optional appendages made on policies for extra coverages provided by insurers; those who pay premiums periodically are called ‘the policyholder’
1. Premium: Money paid to the insurer in exchange for coverage, usually every month, three months, six or twelve months.
2. Deductible: Amounts paid by policyholders out of pocket before their insurance coverage kicks in.
3. Policy Limit: This is the highest amount that a policy can provide as coverage.
4. Coverage: Specific insurances and benefits given under a particular policy.
5. Claim: Formal demand for payment due to damage or loss from an insured event.
6. Exclusion: It spells out what is not covered in a given policy such exclusions differ depending upon the type of policy one may have and the insurer they are dealing with. To clearly understand what these terms mean in relation to consumer insurance policies and enable them make informed decisions it’s crucial for consumers to be conversant with them.
The process by which premiums and coverage conditions are determined by an insurance firm through evaluating risk is referred to as underwriting; this includes considering factors like age, health condition as well as credit history. The person who will receive money from an insurance company if someone dies or becomes disabled is known as a beneficiary while riders on policies refer to additional optional appendages made on policies for extra coverages provided by insurers; those who pay premiums periodically are called ‘the policyholder’
