Need to Know How To Find The Best Insurance Coverage?
It doesn't matter if you are shopping for Auto, Home, Health, Life or Business insurance - if you don't know the lingo you are liable to end up paying too much or getting the wrong coverage. Here's a handy guide to some of the more important insurance terms to keep you on the right track.
General Terms:
Deductible - Deductibles are applied in auto, health and homeowners insurance to trim back the total cost of insurance, by your accepting some of the damages or disbursements prior to the insurance company paying for the balance. Usually you select the quantity of the deductible and the higher the quantity you select, the lower your 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 other segment of the insurance industry that does not fit under the property and casualty label.
Umbrella Insurance - This is wider insurance coverage than the original fundamental policy. For instance, a householder's insurance policy that also admits a universal liability provision of $1,000,000 for personal lawsuits may be considered an umbrella policy.
Auto Insurance:
Collision - Just as the name implies, this is the part of your auto insurance policy that pays for repairing damages to your car after the deductible.
Comprehensive - This term also applies to car insurance and it's that aspect of your insurance coverage that compensates for "non-collision" types of damage like fire, water, malicious mischief 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 - About fifty percent of the states require "no fault" insurance which pays for impairments to vehicles, property and individuals irrespective of who is at fault in the accident.
Medical Insurance:
Ancillary Care/Coverage - Ancillary is just a fancy term for "additional" or "extra" or "related." It applies to comprehensive policies that for example, only cover basic health benefits but also have added (ancillary) coverage for prescription drugs or eye care, etc.
Cobra - A Federal law that requires companies to offer health coverage to employees for a period of time after they have left the company. The ex-employee generally pays for this insurance at group rates.
Co-payment - This is a health insurance term for how the portion you pay for a visit or procedure. After your co-payment and deductible the insurance company covers the rest of the bill.
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 - These are policies that pay while a person is alive for a specified period of time. They are usually offered by life insurance companies.
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 standard life policy that accrues cash value over the life of the policy and with preset premiums. The insurance benefit is also a set at an assured amount. - 23211
General Terms:
Deductible - Deductibles are applied in auto, health and homeowners insurance to trim back the total cost of insurance, by your accepting some of the damages or disbursements prior to the insurance company paying for the balance. Usually you select the quantity of the deductible and the higher the quantity you select, the lower your 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 other segment of the insurance industry that does not fit under the property and casualty label.
Umbrella Insurance - This is wider insurance coverage than the original fundamental policy. For instance, a householder's insurance policy that also admits a universal liability provision of $1,000,000 for personal lawsuits may be considered an umbrella policy.
Auto Insurance:
Collision - Just as the name implies, this is the part of your auto insurance policy that pays for repairing damages to your car after the deductible.
Comprehensive - This term also applies to car insurance and it's that aspect of your insurance coverage that compensates for "non-collision" types of damage like fire, water, malicious mischief 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 - About fifty percent of the states require "no fault" insurance which pays for impairments to vehicles, property and individuals irrespective of who is at fault in the accident.
Medical Insurance:
Ancillary Care/Coverage - Ancillary is just a fancy term for "additional" or "extra" or "related." It applies to comprehensive policies that for example, only cover basic health benefits but also have added (ancillary) coverage for prescription drugs or eye care, etc.
Cobra - A Federal law that requires companies to offer health coverage to employees for a period of time after they have left the company. The ex-employee generally pays for this insurance at group rates.
Co-payment - This is a health insurance term for how the portion you pay for a visit or procedure. After your co-payment and deductible the insurance company covers the rest of the bill.
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 - These are policies that pay while a person is alive for a specified period of time. They are usually offered by life insurance companies.
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 standard life policy that accrues cash value over the life of the policy and with preset premiums. The insurance benefit is also a set at an assured amount. - 23211
About the Author:
Chris Carbukel enjoys showing internet users how to get the best and lowest cost insurance policies for their needs. If you'd like to learn more visit his new website Insurance Price Quotes where you can learn how to get the best deals on all kinds of insurance including finding the best House Insurance Quote.
posted by X - Men @ 2:55 AM
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