INSURANCE

Vocab:
Policy- A contract that
specifies what risks are
covered and how much will
be paid for losses.
Coverage- The risks covered
and amount of money paid
for losses under an insurance
policy.
Policyholder- The person
who holds the policy.
Premium- The money paid
to purchase the policy.
Claim- The paperwork
submitted to insurance
organization describing the
accident, illness, or injury.
Deductible- The amount of
money paid out of pocket by
policyholder before the
insurance coverage begins.
Beneficiary- Someone who

Types of Insurance:

Property insurance is
payment to an insured person if
his or her property is destroyed
while liability insurance is
payment to others if there is
harm to people or their property.
Homeowners- The payment to
cover liability losses and
damages/loss of a home and its
contents.
Renters- The payment for
damage/loss of property in a
rental unit in addition to liability
losses.
Life- The payment to
beneficiaries if an insured
person dies, covers unpaid work
such as child care or meal prep.
Health- Provides money to pay
for health care, covers doctor
visits, hospital bills, vision care,
dentist etc.
Auto- The payment for liability
and property insurance on a
vehicle.

How Insurance Works:

The pool concept: An individuals
payments go into a large amount of
money, the money is only taken out if
you or someone else in the pool need it.
No one has more or less of what they
paid but have protection against loss.
Filing a Claim: After an event of loss
occurs the policyholder files a claim,
which is the paper work describing what
happened and then the insurance
organization determines if it can be
covered.
Paying deductible: If the insurance
organization says the event is covered
by policy, the policyholder pays a
deductible and the remaining amount is
paid by co insurance. The deductible is
paid out of pocket before the insurance
coverage starts.
Receiving Benefits: As an employee
there are sometimes benefits included
besides just your wages. This includes
things like health insurance, disability
insurance and sometimes life insurance.