Helpful Insurance Terms

The financial assistance provided by your insurance company after a covered event occurs.

A formal request you file with your insurance company to receive reimbursement for a covered loss.

The specific risks or situations your insurance policy protects you against.

The amount you pay out-of-pocket before your insurance kicks in and starts covering costs.

A legal agreement between you and an insurance company outlining the coverage details, exclusions, and costs (premiums).

The regular payment you make to the insurance company to maintain your coverage.

You share a portion of the costs with your insurance company after you meet your deductible.

A fixed amount you pay for a covered medical service, typically at the time of service.

A doctor, hospital, or other healthcare facility that has a contract with your insurance company to provide services at negotiated rates.

The total amount you are responsible for paying in a calendar year before your insurance covers 100% of covered costs.

A medical condition you were diagnosed with before enrolling in an insurance plan. Coverage for pre-existing conditions may have limitations.

The person or entity who receives the payout from your life insurance policy upon your death.

Replaces a portion of your income if you become disabled and unable to work.

This is the waiting period between when you become disabled and when you start receiving benefits from your long-term disability insurance policy.

This is the guaranteed death benefit payout stated on your life insurance policy.

Guaranteed issue life insurance offers coverage without medical questions or exams, but typically comes with lower death benefits and higher premiums.

These are optional add-ons to your life insurance policy that can provide additional coverage for specific situations.

Provides coverage for a specific period (term) at a lower premium.

Underwritten life insurance requires answering health questions and potentially undergoing a medical exam, but offers more affordable premiums and higher coverage limits based on your health.

Combines life insurance coverage with a savings component that builds cash value over time.

A specific type of accident insurance that provides benefits for death or serious injuries like loss of limbs or eyesight due to an accident.

A lump sum payment made to your beneficiary if you die as a result of an accident.

Provides financial assistance for medical expenses and lost wages if you are injured in an accident.

This refers to an injury that happens unintentionally and through external, sudden, and violent means.

An accident that happens while traveling on a public transportation system like a bus, train, or airplane.

This is a provision in some accident insurance policies that doubles the benefit payout if the accident happens under certain circumstances, like while traveling on public transportation.

Certain medical conditions might be excluded from coverage under an accident insurance plan, meaning injuries related to those pre-existing conditions wouldn't be covered.

Pays a lump sum or daily benefit if you are injured in an accident, depending on the severity.

The timeframe during which the insurance company will pay out benefits for a covered event (e.g., daily benefit for hospitalization).

A specific situation outlined in your policy that triggers a payout from the insurance company (e.g., hospitalization, accident, critical illness).

Provides a lump sum payment if you are diagnosed with a covered critical illness.

A situation or condition that is not covered by your fixed indemnity plan.

A predetermined amount of money paid by the insurance company for a covered event, regardless of actual expenses.

Provides a fixed cash benefit for each day you are hospitalized.

The maximum amount your dental or vision insurance company will pay towards covered services in a calendar year.

Some plans may waive the copay for preventive care services, encouraging regular checkups.

A document from your insurance company explaining the coverage provided and your remaining financial responsibility after a dental or vision service.

Some plans may have a maximum amount they will cover for specific procedures like crowns or fillings.

A dentist or other vision care provider who has a contract with your insurance company to provide services at discounted rates.

Dental and vision services aimed at preventing future problems, such as cleanings, checkups, and exams. These are typically covered at a higher percentage than other procedures.

A yearly eye exam to check your vision and overall eye health.

Services and materials related to correcting vision, such as eyeglasses, contact lenses, and LASIK surgery.

The time you must be enrolled in a plan before certain services become eligible for coverage.