Buying health, life, disability, or travel insurance can be complicated. We’ve put together a list of definitions of common terminology you’re likely to come across while figuring out the best coverage for you.
Insurance Definitions:
Agent
A licensed representative of an insurance company who sells insurance policies.
All-Perils Coverage
An all-perils policy covers almost anything except what it says it won’t cover. It’s also called an open perils or all-risk policy. Conversely, a named perils policy only covers what it specifically mentions. For instance, if it says it covers floods, it won’t help if your house gets damaged by a fire.
Benefit Period
The period of time during which you can receive long-term disability benefits.
Broker
An independent insurance professional who represents multiple insurance companies and can compare quotes from different companies to find the best insurance coverage for you.
Cancellation
Ending your insurance policy before the end of the term.
Cash Value
The cash value is that portion of your policy which accrues interest and may be accessed for withdrawal or borrowing in times of need.
Claims
Requests for payment from your insurance company for covered losses.
Contingent Beneficiary
A person who will receive the benefits of your insurance policy if your primary beneficiary dies before you.
Co-pay
A fixed amount you pay for covered medical services, such as doctor visits or prescriptions.
Coverage
The specific types of risks or events that your insurance policy protects you against. For example a health insurance policy provides vision care coverage.
Deductible
The amount you pay out-of-pocket before your insurance coverage kicks in.
Direct Billing
A service where your insurance company pays your healthcare provider directly for covered services.
Disability Insurance
Insurance that provides financial protection if you are unable to work due to a disability.
Exclusions
Events or losses that are not covered by your insurance policy.
Group Insurance
Health Insurance that is purchased by an employer or organization for its members.
Health Insurance
Insurance that helps pay for medical expenses and a range of health care services. These might include prescription drugs and dental.
Life Insurance
Insurance that provides a death benefit to your beneficiaries if you die.
Premium
The amount of money you pay to an insurance company for an insurance policy, usually on a monthly basis.
Reinsurance
Insurance for insurance companies.
Replacement Cost Coverage
Coverage that pays to replace your belongings with new ones of the same kind and quality.
Term Life Insurance
Life insurance that provides coverage for a specific period of time.
Underwriting
The process of evaluating an insurance risk and determining the premium.
Universal Life Insurance
Life insurance that combines death benefit protection with a savings component that grows over time.
Waiver of Premium
A provision in some insurance policies that waives your premium payments if you become disabled.
Learn more about Medavie life insurance and Medavie health insurance.