Insurance
Insurance helps protect your health, property, income and future. Learn how the different coverage types work to choose the right policy for your needs.
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What Is Insurance?
PremiumThis is the amount you pay to keep your insurance policy active, usually billed monthly or annually, regardless of whether you file a claim.
DeductibleThis is a fixed amount you must pay out of pocket before your insurance covers remaining eligible costs. Higher deductibles often result in lower premium payments.
Coverage LimitThe maximum amount your insurer will pay for a covered claim is called the coverage limit. If your expenses exceed this limit, you’re responsible for the remaining costs.
ClaimA claim is a formal request submitted to your insurance company asking for payment based on the terms of your policy after a covered event occurs.
PolicyThis written agreement between you and your insurer outlines the coverage details, exclusions, premium costs, deductibles and rules that govern your protection.
InsurerThis refers to the company providing the insurance policy. The insurer assumes the financial risk in exchange for premium payments.
ExclusionsThese are situations or events not covered by an insurance policy. Common exclusions include intentional damage, wear and tear, and certain high-risk activities.
CopayPrimarily used in health insurance, a copay is a fixed amount the insured pays for certain services, such as doctor visits and prescriptions. Your insurance covers the remaining eligible costs.
