inflation, taxation, and insurance part 2

Flashcards covering essential insurance vocabulary and concepts.

Insurance

A financial tool that transfers risk from an individual to an insurance organization.

Deductible

The amount a policyholder pays out of pocket before the insurance coverage kicks in.

Co-Insurance

A provision which requires the insured to share in the costs of a covered claim.

Premium

The amount paid for an insurance policy, usually on a monthly or annual basis.

Liability Insurance

Coverage that pays for injuries or damages to other people or their property for which the insured is responsible.

Property Insurance

Coverage that provides financial reimbursement to the owner or renter of a structure and its contents in the event of damage or theft.

Disability Insurance

Insurance that provides income benefits to individuals who are unable to work due to illness or injury.

Beneficiary

A person designated to receive benefits from an insurance policy.

Household Production

Unpaid work within a household, such as childcare or meal preparation.

Health Insurance

Coverage that pays for medical and surgical expenses incurred by the insured.