Module 6: Insurance: Protect What You Have
out-of-pocket maximum
a cap on out-of-pocket expenses for the year
premium
a fee for insurance
claim
a formal request from the policyholder to have the insurance company make payment for a loss
insurance policy
a legal contract between an insurance company and the policyholder buying the insurance
declarations page
a one-page summary of the coverage amounts
appraisal
a professional opinion on the value of your property
life insurance
ensures that nay of your dependents can maintain their same standard of living by replacing your income or covering final expenses after you die
out-of-pocket expense
everything you pay for medical care aside form the insurance premium
health insurance
helps pay your medical bills
claims adjuster
investigates a claim -- decides if the insurance company must pay a claim, and if so, how much
unemployment insurance
paid for by employers, this coverage is for full-time employees who are laid off to receive partial funds for a set period of time while looking for a new job
policyholder
person or business that owns the insurance policy
auto insurance
probably the biggest concern for most teens; covers you in case of a vehicle accident, a break-in, or theft
disability insurance
protects your most valuable asset -- your income; pays you a percentage of your total income when a health issue prevents you from working for more than six weeks
estimate
what it will cost to repair or replace damaged or stolen property
open enrollment period
when an employer gives the option to sign up for insurance coverage
co-pay
you pay a set dollar amount upfront for a health care service
co-insurance
you pay a set percentage of the charge
rider
additional coverage for specific items
fidelity bonds
aka employee dishonesty insurance; some employers require that you be bonded for jobs that involve handling cash or property of value
workers' compensation
combines disability and health insurance for employees who get injured on the job; covers injury-related medical bills and part of your income while you're recuperating
liability insurance
comes into play when you unintentionally hurt someone or damage another person's property
renters' insurance
covers only your possessions
homeowners' insurance
covers your possessions inside the house, as well as damage to the house itself
actual cash value
current worth
insurance
reimburses you for unexpected losses or damages caused by a specific set of hazards (such as illness or fire) to a specific thing (such as a car or your life) for a fee
property insurance
replaces your personal assets when they're stolen and sometimes when they're destroyed
conditions
spell out what the insurer won't pay for
replacement cost
the amount to buy a new replacement for what was lost
deductible
the amount you pay before insurance kicks in
coverage limit
the maximum amount the insurer will pay for losses, which is described in the policy
insurance settlement
the money an insurance company pays when a claim is valid
risk
the uncertainty of achieving a desired result
