Term
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Definition
| a life insurance policy that offers a death benefit for a defined period. the policy may be guaranteed renewable, but at a different premium. terms can run from 1 to 30 years. when the term ends, so does your coverage. most ____ life insurance products have no cash value nor do they build any residual value. they are popular because they are cheaper than other forms of life insurance such as whole life insurance |
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Term
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Definition
| policies raise the premium on the anniversary date annually. these policies tend to be less expensive than level billing in the early years, when you are younger and more expensive if you hold the policy until your older years |
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Term
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Definition
| look at the term of the policy (10 years for ex) and determine a premium that is appropriate for the whole period. the premium will fall in the middle, but remain constant for the term of the policy. these policies are convenient for planning purposes, because you'll know what the premium will be. |
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Term
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Definition
| liability protection that begins after your automobile or homeowners liability protection has been exhausted. it covers a variety of liability issues including libel and slander cases |
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Term
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Definition
| what the insurance company determines your car was worth just before the accident. this value is not what you paid for the car, but factors in depreciation, resale value, and other factors |
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Term
| actual cash value (homeowners) |
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Definition
| insurance companies use it to compensate you for items damages or stolen from your home. this value is what the insurance company says the item was worth just e=before the incident, not the replacement value. it is the least expensive form of coverage because it provides the least coverage. the actual cash value considers depreciation, market value, condition, and so on |
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Term
| umbrella policies (homeowners) |
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Definition
| provide a coverage that protects you from liabilities resulting from accidents in your car or at your home. they can also protect you in a number of civil matters beyond accidents, such as libel and slander cases. they take over after your other insurance is exhausted |
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Term
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Definition
| the number of people who share the risk for a particular group insurance policy. a basic principle of insurance is the larger the risk pool, the less risk to the insurer and the lower the premium |
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Term
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Definition
| insurance plans attempt to control costs by managing the care patients receive and the providers that dispense the services. by negotiating discounts with providers and driving patients to them, insurance companies can lower overall healthcare costs |
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Term
| usual and customary charges |
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Definition
| are a list of fees that the insurance company says it will pay for healthcare services. doctors in the company's network have agreed to these charges; however, if you go outside the network, a provider may charge more and not agree to the insurance company's fee schedule |
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