Insurance
an arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer
Policy
the contract between an insurance company and the insured individual
Coverage
the amount of liability protection offered to an individual through an insurance policy
Premium
the amount of money paid for an insurance policy
Grace Period
the amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage
Deductible
the amount of money you will pay out of pocket before the insurance company will make a payment
Claim
a formal request by a policyholder to their insurance company for compensation for a covered loss
Copays
(also copayments or coinsurance) the payments an individual makes each time they get medical service
Out of Pocket Maximum
the most a policyholder has to spend for covered services in a year.
Liability
protection against claims resulting from personal injury or property damage as the result of an auto accident
Collision
protection for damage to your car resulting from a collision with another car or object
Comprehensive
protection for loss or damage to your vehicle caused by something other than a collision (such as vandalism)
Uninsured/Underinsured Motorist Protection:
protection for you and passengers if you're hit by an uninsured or underinsured motorist, or if you are the victim of a hit-and-run
Personal Injury Protection (PIP)
a component of auto insurance that pays for medical expenses, lost wages, and other financial losses of the driver and passengers of the policyholder's vehicle
Affordable Care Act (ACA)
also known as Obamacare; the health care reform law enacted in 2010, intended to make affordable health insurance more available
Subsidizing
the practice of employers paying for a portion of their employees' insurance premiums
High-Deductible Health Plan (HDHP)
a health plan with a high minimum deductible for medical expenses
Health Savings Account
a tax-exempt savings account dedicated to health care costs; only available for individuals on a high-deductible health plan (HDHP)
Lifetime limit
the maximum amount of lifetime benefits a person can receive from their insurance company.
Beneficiaries
people who are designated by the policyholder to receive the death benefit of a life insurance policy
Death Benefit
benefit paid to the beneficiaries after the policyholder dies
Term life Insurance
life insurance for a specified amount of time; at the death of the policyholder, the insurance company pays the death benefit to the beneficiaries
Whole Life Insurance (or Cash Value)
life insurance that lasts for the life of the policyholder and uses a portion of the premium as an investment
Dependent
a person who relies on someone for financial support
Identity Theft
the act of fraudulently gaining and using the personal information of someone else, usually for financial gain
Long Term Care Insurance
a type of insurance that covers some or all of the costs of nursing home care, assisted living, in-home care, and other end-of-life care