Whether you’re watching an insurance ad on the TV or looking for insurance yourself, you will more than likely run into terms that you are unfamiliar with. Instead of skimming over them and guessing what they mean, we have created a comprehensive list of terms that you are more than likely to see. For more information, contact Youngbar Agency today.
Commonly-Used Insurance Terms You Should Know
Deductible - A deductible is the amount of money paid by the insured in a claim before the insurance company comes in. Your insurance company will deduct this amount from the claim payment. Deductibles and premiums are inextricably linked, meaning that a higher deductible means a lower premium, and a lower deductible means a higher premium.
Claim - An insurance claim is a formal request to an insurance company for coverage of compensation for a covered loss or policy event.
Adjuster - A claims adjuster or insurance adjuster is employed by, or acts on, behalf of an insurance company to examine, evaluate, and settle insurance claims. They will determine the cause of loss, whether that loss is covered by the policy, the value of the loss, as well as the amount of loss payable by the policy.
Premium - Your premium is what you’ll pay the insurance company for the privilege of having an active insurance plan. Most people pay theirs every month, but your payments might be due once a quarter or once a year.
Peril - Peril is a specific cause of loss that puts an insured item, property, or person at risk of injury, loss, or damage. A peril could be defined as a fire, flood, theft, vandalism, and more.
Health Savings Account - A health savings account, or HSA, relates directly to health insurance and allows individuals to put up to $3,350 in pre-tax dollars in an account to use specifically for medical expenses. Your contributions even lower your tax bill and if you use the money for qualified medical costs, your withdrawals will be tax-free.
This list only covered a few of the terms — there are a lot more to learn! But you’re not alone, Youngbar Agency is here to help you. Contact us today to speak with a representative.