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Insurance Lingo

Do you speak insurance?

Don’t worry, not many of us do. We’ll translate all those crazy-sounding words that insurance people like to use (below). If you don’t find a term you’re looking for, shoot us an email and we’ll help you out.

The person who will receive a benefit payment from the insurance if something were to happen. If you buy income protection insurance, the ‘beneficiary’ or the person who would get a benefit payment is you. With your life insurance, the ‘beneficiary’ would be whoever you want to receive the benefit payment, if you were to die. If you have a life insurance policy covering a partner or child, you could be the beneficiary.

The length of time that you receive an insurance benefit payment. For example, with our income protection insurance, you would receive monthly payments, for up to one year, if you were ill or injured and it kept you out of work. On the other hand, with life insurance, the beneficiary would receive a one-time lump sum if the policyholder were to die.

How long you’re covered by the insurance and how much you (or your loved ones) would receive if something were to happen.

The benefit payment from your life insurance policy that your loved ones receive after your death.

We’re talking about health insurance here. The deductible is the amount you have to pay before your health insurance begins paying. You can use a benefit payment from your Accident Expense Protection to help pay your health insurance deductible.

A child you can claim on your tax returns. Here are the requirements:

  • He or she must be under the age of 19 (at the end of the year). Or, under the age of 24 and a full time student (for at least 5 months out of the year).
  • Can include your child, an adopted child, step-child, or foster child.
  • Can also include a brother or sister, or a niece, nephew, or grandchild.
  • Also includes a child of any age who is totally and permanently disabled.
  • He or she must live with you for more than half the year.
  • This person should not have provided more than half of his or her own support during the year.
Whew! If you have questions, please call us at 1.844.937.4342.

After you become injured or ill, you have an "elimination period" (also known as a waiting period) before you receive a benefit payment from your insurance. The longer the elimination period - the lower the premium (the amount you pay each month). For example, if you have accumulated leave time, you can choose a longer elimination period and reduce the amount you pay each month for insurance. Our needs assessment tool will help you determine which elimination period might work best for you.

Insurance that you can qualify for without a health exam (it is guaranteed to be issued to you).

A health insurance policy that has a higher deductible (the amount you have to pay before your health insurance starts paying) and a lower premium (the monthly amount you pay for insurance). The benefit you receive from Accident Expense Protection insurance can be used to help pay your deductible.

When you purchase insurance you will receive a plan document. This is your insurance policy. It’s a contract between the insurer (usually the insurance company) and the insured (you or the person being insured). It lists things like what’s covered and for how long, as well as how much you’ll pay each month, and more.

That’s the person who is being insured – also known as the ‘policyholder’.

Sometimes referred to as “Change in Family Status.” Some insurance can only be purchased at specific times – like when you start a new job. Life change events create additional opportunities for you to buy life insurance. These include:

  • Getting married, registering as a domestic partner, or executing a domestic partner affidavit
  • Getting divorced or ending a domestic partnership
  • Having a child, adopting a child, or becoming the legal guardian of a child
  • The death of your spouse or domestic partner or a dependent
  • Your child no longer meets the definition of a Dependent Child
  • Your spouse or domestic partner becomes unemployed

Cash that is readily available to you, usually in a checking or savings account, or in a coffee can buried in the backyard (don't worry, we won't tell anyone). This does not include money you have saved for retirement (e.g., IRAs, 401(k) or 403(b) plans, SEPs), money you have invested (e.g., stocks, bonds, mutual funds, CDs), or funds set aside for college.

Your home loan.

Money you have in investment accounts (e.g., stocks, bonds, mutual funds, CDs) that is not designated as a retirement account.

The person who is covered by the insurance policy. Also call the ‘insured.’

A medical condition that started prior to the date your insurance coverage went into effect.

The monthly amount you pay for your insurance.

Also known as “evidence of insurability” (EOI). A process where you provide health information on yourself and dependents prior to purchasing certain types of insurance coverage.

Insurance that last for a set ‘term’ – for example, 20 years. With term life insurance, you pay a set amount each month for the insurance over the ‘term’ of the policy. If you die during the ‘term,’ your loved ones receive a benefit payment (also called the ‘death benefit’). If (maybe we should say when) at the end of the ‘term,’ you’re still alive, then the insurance simply ends. Term life insurance is usually less expensive each month than insurance policies that cover you until you die (no matter how long that is).

This happens behind the scenes. The insurance people looking at your unique situation, and determine if you fit the guidelines the company has set as an acceptable level of risk. If so, they can approve you to purchase the insurance.

The amount of time you need to wait before your coverage begins.