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The Key to Buying The Best Insurance Policy at the Right Price

Whether you’re shopping for Car, Home, Health, Life or any Insurance – learn the lingo or you will pay too much and get the wrong coverage. Here are the more common insurance terms to help you get the right insurance.

General Terms:

Deductible – Deductibles reduce the price of insurance because you pay a predetermined amount of the loss or expense BEFORE the insurer pays. You select the deductible and the higher you choose, the lower your premium.

Premium – This is simply the amount you or your company pays to the insurance company in exchange for their coverage and benefits provided.

Property and Casualty – this identifies a part of the insurance industry that handles impairment to property or individuals hurt in an accident. Auto, householders and commercial liability insurance fall into this category.

Life and Health – This is the other segment of the insurance industry that does not fit under the property and casualty label.

Umbrella Insurance – This is wider insurance coverage than the original fundamental policy. For instance, a householder’s insurance policy that also admits a universal liability provision of $1,000,000 for personal lawsuits may be considered an umbrella policy.

Auto Insurance:

Collision – Like the name implies, this is the aspect of your car insurance that compensates for fixing damages to your car following the deductible.

Comprehensive – This term also applies to car insurance and it’s that aspect of your insurance coverage that compensates for “non-collision” types of damage like fire, water, malicious mischief or theft.

Liability – this is the aspect of your insurance coverage that compensates for losses to a 3rd party like personal injury, property impairment or pain and suffering. Householders policies also usually have liability coverage to protect you from assorted cases of personal injury suits.

No-fault – About fifty percent of the states require “no fault” insurance which pays for impairments to vehicles, property and individuals irrespective of who is at fault in the accident.

Health Insurance:

Ancillary Care – Ancillary simply means “additional” or “related” or “extra”. It applies to policies that not only have basic coverage but have additional (ancillary) coverage for prescription drugs or eye care, for example.

Cobra – A Federal law that requires companies to offer health coverage to employees for a period of time after they have left the company. The ex-employee generally pays for this insurance at group rates.

Co-payment – An amount much your insurance requires you to pay for each visit to the doctor’s office, or for other care. The insurance company then pays the remainder of the bill assuming the deductible has been met.

Fee for Service – With this health Insurance you to select any doctor and the insurer will pay an agreed percentage of “reasonable and customary” fees for that type of doctor in your area. You then pay any remainder.

H.M.O. – HMOs give comprehensive medical coverage for a set fee. But they require you to use their facilities and medical employees thus limiting your choice.

P.P.O. – “PPOs” are networks of physicians who offer their services at a discount negotiated by the insurance company. Thus insurers will normally pay a bigger portion of your expenses when you use these “preferred providers.”

Life Insurance:

Annuity – These are policies that pay while a person is alive for a specified period of time. They are usually offered by life insurance companies.

Term Life – Term life is a form of insurance bought for a specified time (or term). If the insured dies during this time period, the insurance is paid. If not, the insurance coverage expires or must be renewed to keep the benefit.

Universal Life – A Life insurance policy attached to a savings vehicle tied to market interest rates and where the benefits are not fixed but may change within limits.

Whole Life – A policy based on a fixed rate of return and with pre-determined premium that build cash value while the policy is in force. The insurance benefit is fixed as well.

Chris Carbukel enjoys helping others get the most economical insurance policies for their needs. If you’d like to know more visit his new website Insurance Price Quotes where you can learn how to get the best deals on all kinds of insurance including finding the best Home Insurance Comparison.

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