Insurance Terms Explained

Insurance Terms Explained
This page offers definition to several insurance terms that are commonly used in the industry. New terms and explanations will be added as need arises.

Insure Definition

To insure is to arrange for compensation in case of damage or loss of property, injury to or the death of somebody, in exchange for regular payments to a company or the state.

Claim Insurance Definition

An insurance claim is a official application to an insurance firm asking for payment based on the terms of the insurance policy. The insurance company will appraise the claim for its legitimacy then pays out the insured or requesting party when approved.
Claim insurance covers the lot from death benefits on life insurance policies to mundane health checkup at the hospital. In most cases, third parties file claims on behalf of the insured individual, but usually only the individual(s) listed on the policy are eligible to claims payment.

Insurance Premiums Definition

An insurance premium is the sum of money that a person or business must pay for an insurance policy.
Insurance premiums are considered revenue by the insurance company when it is received but also signifies a liability in that the company must provide coverage for claims being made against the policy.

What is an Insurance Deductible

An insurance deductible is the sum of money a person pays for expenses before his insurance plan starts to pay. Deductibles are usually offered as clauses in an insurance policy that define how much of an insurance-covered expense is accepted by the policy holder.
Depending on the policy, the deductible may apply per year or per covered incident. Are you asking yourself what’s a deductible health insurance? Well, we’ve covered it in detail here.

Medical Payment Insurance Definition

Every so often, when individuals consider the essential car insurance cover to buy, they are mostly concerned about the financial effects of damage to their vehicle. However, if you think of it critically, you then realize that your health is far more important than your car.
To guarantee yourself of medical expenses cover after an unfortunate accident, you purchase a medical payment insurance cover.

What Does Medical Payment Insurance Cover?

Medical payments cover normally pays for medical expenses after you are injured in a car accident, regardless of who is found culpable for the accident.
Benefits and constraints of medical payment insurance cover will vary between car insurance companies. Benefits may include payments of funeral expenses, the required dental care as a result of the car accident, injuries sustained by passengers or pedestrians hit by the car.

Premium Tax Insurance

Premium tax insurance also known as insurance premium tax is a form of indirect tax charged on general insurance premiums in the United Kingdom.
The United Kingdom government introduced the Insurance Premium Tax to obtain revenue from the insurance sector, which was regarded as being under-taxed, and not subject to VAT.

Insurance Copay

Insurance copay is a fixed amount for a service cover paid by a patient to the insurance company before the patient receives checkups and treatment from medical doctor.
In the U.S.A, insurance copay is a payment well-defined in an insurance policy paid by an insured individual every time a medical service is obtained. Insurance companies use copay to share health care costs to prevent moral hazard.

Insurance Rates Definition

An insurance rate is the exact sum of money that an individual must pay to obtain a particular amount of insurance cover. Insurance rates are mostly categorized by monthly or yearly payments, but not always. Insurance rates happen to be dissimilar from one insurance category to the next.

Insurance Policy Definition

Insurance policy is an official contract-document issued by an insurance company to the insured person. It works as the legal proof of an insurance agreement and puts an indemnity cover into effect.
The policy also sets out the exact terms on which the indemnity cover has been provided, which may include the specific risks covered, deductibles, amount of premium, method of premium payment as well as the duration of coverage.

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