Insurance Essentials

Deductible- the amount paid out of pocket for the initial of loss before the insurance coverage begins.

Risk- the uncertainty about a situations outcome.

Policy- a contract between the individual and the insurer to protect the company against risk.

Policyholder- the consumer who purchased the policy.

Insurance- the arrangement between the individual and the insurer to protect the company against risk.

Homeowners/renters insurance- combines property and liability insurance into one policy to protect from damage costs due to perils

Life insurance- is a contract between an insurer and policy holder specifying a sum to be paid to beneficiary upon the insured death.

Disability insurance- replaces a position of ones income if they become unable to work due to illness or injury.

Heathy insurance- provides protection against financial losses resulting from injury, illness, and disability

Automobile insurance- arrangement between the individual and insurer to protect the individual against risk from car accidents