Resources
Insurance glossary
Insurance shouldn't require a decoder ring. Here are the terms you'll actually run into, in plain English.
- Beneficiary
- The person or entity you designate to receive a life insurance policy's death benefit.
- Deductible
- The amount you pay out of pocket on a covered claim before the insurer begins to pay.
- Liability Coverage
- Protection that pays for injury or damage you're legally responsible for causing to others.
- Open Enrollment
- The annual window when you can enroll in or change a health insurance plan without a qualifying event.
- Premium
- The amount you pay (monthly, quarterly or annually) to keep an insurance policy in force.
- Replacement Cost
- Coverage that pays to repair or rebuild property at current prices, without deducting for depreciation.
- Rider
- An optional add-on that modifies or extends a base policy's coverage.
- Term Life
- Life insurance that provides coverage for a specific period, such as 10, 20 or 30 years.
- Umbrella Policy
- Extra liability coverage that applies above the limits of your auto and home policies.
- Underwriting
- The process an insurer uses to evaluate risk and decide whether to issue a policy, and at what price.