Insurance Glossary

Plain English explanations of insurance terms used by agents, companies and lawyers and found in your insurance policies.

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a policy terminated because of failure to pay the premium(s).

a policy in which the payments remain the same over the life of the policy.

any legally enforceable obligation.

insurance that pays when you are liable for injuries to other Persons or damage to their property.

is the total dollar amount the plan will pay for all types of medical expenses, for all benefit periods, while the insured person is alive and covered under the plan.

the conditions or circumstances for which benefits are not payable or are limited.

whole life insurance where the policyholder pays premiums for a specified number of years, or until death.

the maximum amount of benefits the insurance company agrees to pay on a loss.

administration costs you pay when buying life insurance.

borrowing against your policy’s accumulated cash value. The borrowed amount is deducted from the death benefit until you have repaid it.

the basis for a claim under an insurance policy.

the dollar amount an insurer pays in claims compared to the amount it collects in premiums.

a life insurance policy with a high premium and small death benefit.