July 13, 2022
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Insurance can be a complicated topic, especially when terms are being used that are specific to the insurance field. Not everyone is an insurance specialist, but that’s okay! Below are some of the most important terms that have to do with insurance. You have probably heard these words before when researching a policy or contacting an insurance company, and now you will know exactly what they mean.
Agent – the person in charge of helping you through the insurance process.
Appraisal – an assessment or evaluation of an object/property for an estimated value
At-fault – points to a specific party in an incident in which they caused the situation because of reckless and/or careless actions
Claim – a formal request to an insurance company to receive compensation or coverage for an object or event that can be covered by a policy
Contingent beneficiary – person identified in will or trust that is second in line to receive benefits outlined in that said document; second in line to the primary beneficiary
Declarations page – an informational page that outlines the kinds of coverage and the costs for coverage that a person is committing to
Deductible – the amount of money that a person themself is responsible for paying for when it comes to insured loss
Estimate – a calculated dollar amount that identifies the cost of damage after an incident or need for coverage
Insured – covered by an insurance policy
Liability – the responsibility that one party has to provide assistance to damage that was committed by that party
Limits – the maximum amount of coverage that an insurance company agrees to offer for a certain policy
Loss – when something that is insured experiences damage
Policy – the agreement or contract between the insured and the insurance company on the details of coverage
Policyholder – identifies the person which the insurance policy covers or the person that owns the policy
Premiums – the amount of money that a policyholder will pay to the insurance company in order to be covered
Primary beneficiary – person identified in will or trust that is first in line to receive benefits outlined in the said document
Term life coverage – a type of life insurance that has a specified end date
Whole life coverage – a type of life insurance that is permanent with no end date (if all premiums are paid on time)