Want to Learn How To Buy The Right Insurance?
Whether you’re shopping for Car, Home, Health, Life or any Insurance – learn the lingo or you will pay too much and get the wrong coverage. Here are the more common insurance terms to help you get the right insurance.
General Terms:
Deductible – Deductibles are used in auto, health and homeowners insurance to reduce the overall cost of insurance by you assuming some of the damages or expenses BEFORE the insurance company pays for the remainder. Usually you choose the amount of the deductible and the higher the amount you choose, the lower your insurance premium.
Premium – This is simply the amount you or your company pays to the insurance company in exchange for their coverage and benefits provided.
Property and Casualty – this identifies a part of the insurance industry that handles impairment to property or individuals hurt in an accident. Auto, householders and commercial liability insurance fall into this category.
Life and Health – This is the part of the insurance industry that covers life and health insurance as opposed to property and casualty.
Umbrella Policy – This is a general term implying broader coverage than a basic policy would typically offer can. For example, homeowner insurance that includes coverage for general lawsuits would be considered umbrella insurance.
Car Insurance:
Collision – Like the name implies, this is the aspect of your car insurance that compensates for fixing damages to your car following the deductible.
Comprehensive – Comprehensive insurance covers the “non-collision” types of losses to your vehicle like fire, flood, vandalism or theft.
Liability – this is the aspect of your insurance coverage that compensates for losses to a 3rd party like personal injury, property impairment or pain and suffering. Householders policies also usually have liability coverage to protect you from assorted cases of personal injury suits.
No-fault – Half of the states have no-fault insurance which pays for losses no matter who is at fault in the accident.
Medical Insurance:
Ancillary Care/Coverage – Ancillary is a term for “extra” or “additional” or “associated.” It is for insurance policies that not only cover common health benefits but also have additional (ancillary) insurance coverage for prescription medicine or eye care, etc.
Cobra – The “Consolidated Omnibus Budget Reconciliation Act” is a Federal law that requires companies to offer extended health care coverage to terminated employees for a period of time. This coverage is typically paid for by the ex-employee but at group rates.
Co-payment – An amount much your insurance requires you to pay for each visit to the doctor’s office, or for other care. The insurance company then pays the remainder of the bill assuming the deductible has been met.
Fee for Service – This is health Insurance that permits you to choose any Doctor and covers some predetermined share of “reasonable and customary” fees. You then pay the remainder.
H,M.O. – “HMOs” are created to deliver complete health coverage for a predetermined fee. But, these organizations generally call for you to use their MD’s and hospitals thus restricting your selection.
P.P.O. – “PPOs” are networks of physicians who offer their services at a discount negotiated by the insurance company. Thus insurers will normally pay a bigger portion of your expenses when you use these “preferred providers.”
Life Insurance:
Annuity – Annuities are policies that pay while the insured is alive for a specified period of time. They are typically offered by Life insurance companies as a vehicle to supplement retirement or disability.
Term Life – Term life is a form of life insurance purchased for a specific period (term) of time. If the person dies during this period, the insurance is paid. If not, the coverage expires or must be renewed to maintain the benefit.
Universal Life – A Life policy accompanied by a savings plan tied to market rates of interest and the benefits are not fixed but can change within boundaries.
Whole Life – A traditional life insurance policy that accumulates cash value over the life of the policy at a fixed rate and with pre-determined premiums. The insurance benefit is also a fixed and guaranteed amount.
Chris Carbukel enjoys showing people how to find the most economical insurance for their needs. If you’d like to know more visit his new website Insurance-Price-Quotes.org where you can learn how to get the best deals on all kinds of insurance including finding the best Home Insurance Comparison.
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