The Sunday Mail
Here are some of the basic terminology for life insurance:
Insured — The person(s) covered by the insurance policy.
Premiums — The monthly or annual amount that you must pay in order to have the insurance coverage.
Face Amount — The dollar amount that the insurance policy would pay out upon the death of the Insured.
Primary beneficiary — The person(s) designated to receive the proceeds of the life insurance policy upon the death of the Insured.
Contingent Beneficiary — The person(s) designated to receive the proceeds of the life insurance policy if the Primary Beneficiary is no longer living.
Term Life Coverage — The type of coverage that lasts for only a specified period of time (the “term”) and has a defined ending date. The face amount would be paid to the designated beneficiary if the Insured dies while the policy is in force.
Whole Life Coverage — The type of coverage that can last for as long as the Insured is alive, provided that all of the premiums are paid.
This type of coverage usually keeps the same premium rate throughout the life of the policy.
Automobile Insurance Terminology
Requirements regarding auto insurance vary state by state, but the following definitions can be helpful for understanding the basics when shopping for auto insurance:
Insured — The person(s) covered by the insurance policy.
Deductible — The amount of money that you must pay out of pocket for damages sustained, such as in a collision, before your insurance kicks in and starts to make payments.
Premiums — The monthly or annual amount that you must pay in order to have the exchange for insurance coverage.
Collision Coverage – The type of coverage that pays for the damages to your vehicle sustained as a result of a collision with another vehicle or object.
Comprehensive Coverage — The type of coverage that pays for damage to your vehicle sustained as a result of fire, theft, vandalism, or various other stated causes.
Bodily Injury Coverage — The type of coverage that pays for medical expenses and/or funeral costs of other individuals injured, or killed, in an accident for which you are liable.
Medical Payments Coverage — The type of coverage that pays for medical and funeral expenses for anyone covered under your insurance policy in the event of an accident, regardless of fault.
Uninsured Motorist Coverage — The type of coverage that pays for injuries, including death, which you and/or other occupants of your vehicle sustain as a result of a collision with an uninsured driver who is at fault.
