Insurance Terms and Phrases You Should Know

Insurance terms and phrases are words commonly used by insurance providers, agents and brokers. When something happens in life, you want to make sure that you have the coverage you need. Many insurance policies have terms and clauses that can be confusing. There are several different types of policies available to choose from. Understanding some of these terms and how they affect your premium is important.

Most individuals have heard of a policy called an aggregate limit or an annual limit. This is a limit on the amount of money the insurance company will pay out over the course of one year. This is called an aggregated amount. Some people prefer annual limits because they allow them to insure their whole property and be compensated for any injuries that may occur during the year. If an individual chooses this type of insurance they should understand how this decision affects their monthly premiums.

The insurer or agent that sold you the policy determines your aggregate limit each month based on several factors. Factors that go into this determination include your age, sex, current occupation and whether you rent or not. If you have an illness or injury that makes you ineligible for benefits under your insurance coverage, your insurance carrier will add your missed payments or claims to the end of your policy and your cost will increase.

One of the other insurance terms and phrases you have probably heard before is collision coverage. This is a phrase often used when talking about liability auto insurance. Collision coverage is designed to pay for damage to your vehicle due to an insured’s fault. Most people have heard of collision but they probably do not understand how it affects their premium.

Health care is another popular term that you will encounter when talking to insurance providers. Health care is coverage that covers your health care expenses in the event you become ill or are injured. Health insurance companies offer various types of health care coverage. Some types of coverage may be more expensive than others and some may be optional. Some health care plans are offered as group plans while other types of plans are available for individuals.

There are numerous other phrases and words that you will come across throughout your research as you seek to find the best health insurance coverage for you. Understanding what these words mean can help you make a better informed decision on the coverage you need. Take your time to look around and ask questions to help you understand the phrases and words you are exposed to the most.

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