Insurance Glossary
Short definitions for policy terms that affect coverage, claims, and cost sharing.
Premium
The amount paid to keep an insurance policy active.
Deductible
The amount you pay for covered costs before insurance begins paying according to the policy.
Copayment
A fixed amount you pay for a covered service, often used in health insurance.
Coinsurance
A percentage share of covered costs that you pay after meeting a deductible, depending on policy terms.
Out-of-pocket maximum
The most you pay for covered in-network health care in a plan year, excluding premiums.
Exclusion
A situation, cause of loss, item, or service the policy does not cover.
Rider
An optional policy provision that changes or adds coverage.
Endorsement
A written change to an insurance policy that adds, removes, or modifies coverage.
Beneficiary
A person or entity named to receive policy benefits, often used in life insurance.
Underwriting
The insurer's process for evaluating risk, eligibility, pricing, and policy terms.
Claim
A request for payment or coverage under an insurance policy.
Policy limit
The maximum amount an insurer will pay for a covered claim or coverage category.
Waiting period
A period after a policy starts before certain benefits become available.
Pre-existing condition
A condition that existed before coverage began or during a waiting period, depending on policy definitions.
Actual cash value
A valuation method that may account for depreciation when settling covered property claims.
Replacement cost
A valuation method based on the cost to replace damaged property with new property of like kind and quality, subject to policy terms.