We have a confession to make. Here at Daigle & Travers, we’re a bunch of insurance geeks. It’s probably not a huge surprise — we love what we do and we’re passionate about helping our customers. But in understanding our geekish ways, we also understand that oftentimes, most people just don’t know what we’re talking about.
Let’s face it — us insurance pros definitely use jargon that flies high over most people’s heads. And that’s okay. But when it comes time to find the perfect coverage that fits your needs, you’re going to want to understand what we’re talking about as we dive into all possible coverage options.
And that’s why we wanted to put together a helpful guide to help all of our non-insurance geeks out there understand what the heck we’re going on about.
Are you ready to start using your own insurance jargon? Let’s get started!
An insurance premium is an amount you, the insured, pay to the insurer for taking on a percentage of the risk involved.
Risk, in terms of insurance, is the chance something bad might happen — this could be theft, damage, injury, etc.
The adjuster is the individual who investigates claims and provides options for settlement.
A deductible is the amount the insured has to pay for a given service before insurance steps in to pay the rest.
A cp-pay is similar to a deductible. This is the money you pay out of pocket for a service before insurance steps in to pay the rest.
This related to the percentage an insurer will cover when it comes to medical coverage. It’s calculated after any deductibles or copays.
A beneficiary is an individual or institution that receives insurance benefits after the policyholder passes away.
A claim in the insurance world is a formal request made by the insured to the insurance company for reimbursement of compensation for a covered loss or event.
Liability insurance or coverage refers to a policy that covers the insured against claims of theft, injury or harm to others or their property.
A lapse in the insurance space is the period of time an individual goes without a type of insurance policy.
These 10 common insurance terms might sound straightforward at first, but oftentimes they can cause great confusion if not understand properly.
With this knowledge in mind, you’ll be in great shape to tackle your next insurance meeting. Did we miss any you’re still confused about?
If you’re looking to round out your insurance coverage, check out our extensive collection of personal insurance policies.