An insurance policy is a legal contract between an insurance company (the insurer) and a person (the insured) or entity (the insured) that defines the insurance terms of the insurance coverage.
Here are some basic insurance terms that you should know:
- Premium: The amount of money you pay to the insurance company in exchange for coverage.
- Deductible: The amount of money you have to pay out of pocket before the insurance company will start paying for covered losses.
- Policy limits: The maximum amount of money the insurance company will pay for covered losses.
- Exclusions: Events or losses that are not covered by the insurance policy.
- Rider: An add-on to an insurance policy that provides additional coverage or options.
- Claim: A request for payment from the insurance company for a covered loss.
- Insurance company: The company that provides insurance coverage.
- Policyholder: The person or entity who owns the insurance policy.
- Insured: The person or entity who is protected by the insurance policy.
- Benefits: The payments or services that the insurance company provides to the insured in the event of a covered loss.
- Underwriting: The process by which the insurance company evaluates an applicant’s risk and determines whether to offer coverage.
- Coinsurance: A percentage of the cost of a covered loss that the insured is responsible for paying, after the deductible has been met.
- Copayment: A fixed amount that the insured is responsible for paying for each covered service, after the deductible has been met.
- Pre-existing condition: A medical condition that existed before the insurance policy was purchased.
- Grace period: A period of time after the premium due date during which the insurance company will still provide coverage, even if the premium has not been paid.
- Claims-made coverage: A type of insurance coverage that only covers losses that occur during the policy period and that are reported to the insurance company during the policy period.
- Occurrence coverage: A type of insurance coverage that covers losses that occur during the policy period, regardless of when they are reported to the insurance company.
These are just a few of the basic insurance terms that you should know. It is important to read your insurance policy carefully and understand the terms and conditions before you purchase coverage.
The insurance policy is an important document that should be read carefully and understood by both the insured and the insurer such as Cigna. If you have any questions about your insurance policy or insurance terms inside, you should contact your insurance company.
The insurance policy typically includes the following information:
- The types of losses that are covered.
- The amount of money that the insurance company will pay for covered losses.
- The premium that the insured must pay.
- The deductible that the insured must pay before the insurance company will start paying for covered losses.
- The policy period, which is the length of time that the coverage is in effect.
- The exclusions, which are events or losses that are not covered by the policy.
- The conditions, which are the terms and requirements that the insured must meet in order to keep the policy in force.
The specific types of insurance policies that you need will depend on your individual circumstances. It is important to talk to an insurance agent to get a quote for the types of policies that you are interested in and to make sure that you have the right coverage for your needs.
