Whether you're inquiring about health insurance or life insurance, you should know the language present in the documents. Having a basic understanding of insurance terms can help make a difference when choosing policies. And if you already have insurance, you must be familiar with the terms in your current plan. So look at these five basic insurance terms that you should know.
Claim
An insurance claim is a formal way of asking your insurance company for coverage or compensation for a covered loss or policy event. Payment from insurance claims usually helps replace or repair the property or pay for health care services. Filing an insurance claim should be an easy process.
Deductible
A deductible is the pre-determined amount of money you must pay out of pocket before the insurance company will begin paying any covered expenses. For example, with a $1,000 deductible, you must pay the first $1,000 of services yourself.
You can pay the deductible once per year or once per condition, depending on your plan. To pay once per condition means that you pay deductibles each time you file a claim. After paying your deductible, you will only pay copayments or coinsurance for your service.
Beneficiary
A beneficiary would receive benefits from the insurance payout if the policyholder were to pass away while still on the insurance plan. An insurance policy can have more than one beneficiary. To divide the payout, you can assign a percentage of the insurance payout to each beneficiary in advance if you have more than one designated beneficiary.
Exclusions
Exclusions are the circumstances in which the insurance policy doesn’t apply. If your situation falls under the list of exclusions, you won’t reap insurance benefits or claims against the insurance policy.
Premium
A premium is the sum of money you pay to insurance companies for a policy. Insurance premiums payments are for policies that cover auto, home, health, and life insurance. Your premium payment amount depends on many factors, including the deductibles and coverage limits.
Now that you understand the five basic insurance terms you should know, you can look at various policies to see which insurance works best for you. If you're searching for insurance in Long Beach, California, then contact Saferoad Insurance.
We’re an independent agency that specializes in providing top-notch and affordable insurance rates for all lines of insurance.