How to Get the Best Insurance Coverage Policy at the Right Price
Looking for Car, House, Health, Life or Commercial insurance? If you do not know the terminology it is likely you will end up paying too much or getting the wrong coverage. Here is an informative guide to essential insurance terminology to help you get what you need.
Deductible – Deductibles are applied in auto, health and homeowner insurance to trim back the total cost of insurance, by your paying for some of the damages prior to the insurance company paying their share. You select the amount of the deductible and the higher the amount you select, the lower your premium.
Premium – the premium is the cost of the insurance. It is how much you or your company pays for the coverage.
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 part of the insurance industry that covers life and health insurance as opposed to property and casualty.
Umbrella Policy – This is broader coverage than the original underlying policy. For example, a homeowner policy that also includes a general liability provision of $1 million for personal lawsuits might be considered an umbrella policy.
Automobile Insurance Terminology:
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 is 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 Terminology:
Ancillary Care/Coverage – Ancillary is a term for “extra” or “additional” or “associated.” It is for insurance policies that not only cover common health benefits but also have additional (ancillary) insurance coverage for prescription medicine 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 – An amount much your insurance requires you to pay for each visit to the doctors office, or for other care. The insurance company then pays the remainder of the bill assuming the deductible has been met.
Fee for Service – With this health Insurance you to select any doctor and the insurer will pay an agreed percentage of “reasonable and customary” fees for that type of doctor in your area. You then pay any 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 doctors and hospitals thus restricting your selection.
P.P.O. – PPOs are networks of care providers who charge a fee for service that is discounted based on a negotiated amount with the insurance company. Insurers thus cover a larger portion of your expense when you use their “preferred providers.”
Life Insurance Terminology:
Annuity – Annuities are special types of policies that pay benefits while a person is alive for a specified period of time. They are usually offered by life insurance companies and may be an option attached to a life policy.
Term Life – Term life is life insurance in effect only for a specified period (term) of time. If death occurs during this period, the insurance is paid. If not, the coverage must be renewed or it expires.
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 policy based on a fixed rate of return and with pre-determined premium that build cash value while the policy is in force. The insurance benefit is fixed as well.
Now that you have a better idea of what you are looking for, it is time to go shopping. Check online to find companies ready to give you fast and informative insurance rates in almost every category. There is no substitute for an informed shopper in order to get the best deal. Now you can consider yourself just such a shopper when it comes to insurance.
Source : https://ezinearticles.com/?How-to-Get-the-Best-Insurance-Coverage-Policy-at-the-Right-Price&id=3052028
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