Key Insurance Terminology Explained

  • Claim: A formal request to the insurer for payment or compensation.
  • Coverage: The risks or perils covered by the policy.
  • Policyholder: The person or entity purchasing the insurance.
  • Beneficiary: The person who receives the benefit or payout from the policy in case of a claim.
  • Premium: The payment made by the policyholder to the insurer.
  • Deductible: The amount the policyholder must pay out-of-pocket before the insurer pays for covered expenses.

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