2. KNOW THE LINGO

When researching the different types of insurance policies you may come across some unfamiliar vocabulary. Learning some key insurance terms will help you understand what you are reading when you are shopping for an insurance policy.

Agent – person who sells and services insurance policies.

Broker – insurance salesperson that works for clients and not insurance companies.

Benefit Period – the length of time that benefits are paid to the insured and their dependants.

Claim – demand to the insurance company by the insured or their dependants for payment as stated in the insurance policy.

Coverage – protection provided by the insurance policy.

Co-payment – required payment made by the insured party for a given service before the insurance company will consider paying for health care services. Usually a flat-rate.

Deductible – amount insured must pay before the insurance kicks in. Typically an annual amount.

Living Benefits – way to receive death benefits from an insurance policy before the death of the insured. Usually because of terminal or catastrophic illness.

Policy – the written insurance contract between the insurance company and the policy holder. (The policy holder is not necessarily the insured.)

Premium – Cost of insurance for a specified risk for a certain period of time.

Renewal – automatic continuance of the insurance policy by payment of another premium.

This list is not complete. There are many more terms you will come across while researching the different insurance policies available. If you are unsure what a term in a policy means, be sure to ask before you commit to an insurance policy.