Words and phrases used in insurance, with definitions - free for students of business English who need to learn business vocabulary. Business English for ESL learners.
Insurance providers evaluate the risk and determine rates for various insurance coverage options. The insurance provider pays you up to the agreed-upon amount of the insurance policy if an insured event occurs and you sustain damages. Because of how they operate, insurance firms can pay this and yet turn a profit.
When it comes to insurance, there are a lot of words and phrases that can be confusing. To help make things a little easier, we've put together a list of some of the most common insurance terms and their definitions.
Premium: This is the amount that you pay for your insurance coverage.
Deductible: This is the amount that you would have to pay out-of-pocket before your insurance coverage would kick in.
Co-Pay: This is the amount that you would have to pay for each visit or service, usually a set dollar amount or a percentage of the total cost.
Co-Insurance: This is the amount that you would have to pay for each visit or service, usually a set dollar amount or a percentage of the total cost.
Policy Limit: This is the maximum amount of money that your insurance policy will pay out.
Policy: This is the contract between you and your insurance company. It outlines the coverage that you have and what is included in your policy.
Coverage: This is the amount of protection that you have under your insurance policy.
Deductible: This is the amount of money that you have to pay out-of-pocket before your insurance policy covers the rest.
Claim: This is when you file a request with your insurance company for benefits or compensation.
We hope this insurance vocabulary helps the next time you're shopping for a policy or filing a claim. And remember, if you have any questions, our team at [INSURANCE COMPANY] is always here to help.