Insurance is an incredibly overwhelming topic for many people. There are so many companies vying for your business that throw around terms and phrases that are confusing. If you’ve ever tried to choose an insurance plan or make an insurance claim, then yo
u know how much technical jargon there can be. In order to get the most out of your insurance, we would like to define a few key terms. Here’s a good start on your way to being insurance savvy.
An adjustor is a person who investigates and settles various insurance claims.
An insurance agent is someone who sells insurance policies.
Bodily injury as it relates to auto insurance is defined as any physical injury to a person.
A deductible is the amount of money you need to pay each year to cover eligible medical expenses before your insurance policy kicks in. Deductibles vary widely from plan to plan. For example, with a high deductible plan, you must pay a certain amount (say $4,000) before your insurance will cover anything. After you hit that mark, your insurance will start to cover expenses.
A premium is the amount paid by either an employer or an individual to an insurance company each month in exchange for insurance coverage.
Term Life Insurance
Term life insurance is a life insurance policy that provides coverage at a fixed rate for a limited period of time. Upon the holder’s death, a death benefit is paid out if the death occurs within the time period defined.
Underwriting is the process where an underwriter reviews an insurance application and determines if the company will either accept or reject the application.
Uninsured/Underinsured Motorist Coverage
Uninsured or underinsured motorist coverage helps pay for property damage and injuries caused by either a hit-and-run driver or a driver without liability insurance. It may even pay when your bills are higher than the other driver’s liability coverage.
Whole Life Insurance
Whole life insurance is a continual policy that is paid throughout the life of the policyholder. Premiums are usually higher, but the policyholder can withdraw money from the policy in emergencies, which you can’t do with term life insurance.
If you’re looking for insurance in Burlington, now you can make an informed decision when choosing an insurance company.