Glossary of Terms for Insurance

<p></p> <img src="https://dcr-apis.s3.us-east-2.amazonaws.com/wp_contents/uploads/DCR-ADMIN/Article_Webp/glossary%2520insurance.webp" alt="undefined" style="height: auto;width: auto"/> <p></p> <p>Here are some key terms and descriptions that will help you navigate your way through the auto, home and/or health insurance process.</p> <p><strong>adjuster</strong><br>An adjuster is a person who investigates and evaluates your insurance claim. They assess the damage, determine if the claim is covered and calculate the amount the insurance company should pay.</p> <p><strong>beneficiary</strong><br>This refers to the person or entity designated to receive the proceeds from an insurance policy upon the occurrence of a specified event (typically the death of the policyholder).</p> <p><strong>claim</strong><br>A claim is a formal request to an insurance company asking for a payment based on the terms of the insurance policy. The company will review the claim for validity and then pay out to the insured or an approved interested party on behalf of the insured.</p> <p><strong>coinsurance</strong><br>Different from a co-pay, coinsurance is a percentage of the costs of a covered health care service you pay after your deductible has been met. For example, if your insurance plan's coinsurance is 20%, you pay 20% of the costs of a covered health care service while your insurance company pays the remaining 80%.</p> <p><strong>co-pay</strong><br>A co-pay is a fixed amount you pay for a covered health care service, usually when you receive the service. This is common in health insurance policies and varies depending on the type of service or medication.</p> <p><strong>deductible</strong><br>The deductible is the amount you’re required to pay out of pocket before your insurance company starts to pay for covered claims. Choosing a higher deductible can lower your premium costs, but it means more out-of-pocket expenses when you file a claim.</p> <p><strong>exclusions</strong><br>These are specific conditions or circumstances that aren’t covered by your insurance policy. Understanding the exclusions in your policy is crucial for avoiding surprises when you file a claim.</p> <p><strong>grace period</strong><br>A set amount of time after the premium is due in which a policyholder can make a premium payment without their policy being canceled. The grace period allows the insurance coverage to continue as long as the premium is paid within this time frame.&nbsp;</p> <p><strong>policy limit</strong><br>This refers to the maximum amount an insurance company will pay for a covered loss. Policy limits can be per occurrence or over the life of the policy, known as the lifetime maximum.</p> <p><strong>premium</strong><br>This is the amount you pay for your insurance policy. It can be due monthly, quarterly or annually, depending on your agreement with the insurer. Your premium is determined by various factors, including the type of coverage, your age and lifestyle, and, in some cases, your credit score.</p> <p><strong>rider</strong><br>Also known as an endorsement, a rider is an addition to an insurance policy that changes the terms or scope of the original coverage. Riders can be added to policies to provide protection for things that aren’t covered under the standard policy.</p> <p><strong>total loss</strong><br>In the context of auto or property insurance, a total loss occurs when the cost of repairing the damage exceeds the value of the insured item or is beyond repair. In such cases, the insurance company may pay the policyholder the value of the item instead of covering repair costs.</p> <p><strong>underwriting</strong><br>This is the process by which insurers evaluate the risk of insuring a home, car or individual. The outcome of underwriting determines the premium that the policyholder will pay.&nbsp;</p> <p><a href="https://www.diamondcertified.org/" target="_self">Use Diamond Certified Resource to find top rated companies</a></p> <p><strong>Local, Top Rated Diamond Certified Companies Related to Your Topic</strong><br><a href="https://www.diamondcertified.org/san-mateo-insurance-health-employee-benefits/" target="_self">San Mateo County Health &amp; Employee Benefits Insurance Companies</a><br><a href="https://www.diamondcertified.org/santa-clara-insurance-health-employee-benefits/" target="_self">Santa Clara County Health &amp; Employee Benefits Insurance Companies</a><br><a href="https://www.diamondcertified.org/insurance-health-employee-benefits/ca/monterey-county/" target="_self">Monterey County Health &amp; Employee Benefits Insurance Companies</a><br><a href="https://www.diamondcertified.org/san-francisco-insurance-health-employee-benefits/" target="_self">San Francisco Health &amp; Employee Benefits Insurance Companies</a><br><a href="https://www.diamondcertified.org/alameda-insurance-health-employee-benefits/" target="_self">Alameda County Health &amp; Employee Benefits Insurance Companies</a></p> <p><strong>Related Articles</strong><br><a href="https://www.diamondcertified.org/Guide/insurance/" target="_self">The Essential Guide to Insurance Services</a><br><a href="https://www.diamondcertified.org/find-expert-advice/" target="_self">Get Expert Advice From Owners of Top Rated Local Companies</a><br><a href="https://www.diamondcertified.org/membership/" target="_self">Become a Diamond Certified Preferred Member (Always Free)</a>&nbsp;</p>