Insurance Glossary
Understanding insurance terminology is the first step to making informed decisions about your coverage. Browse our comprehensive glossary of insurance terms.
This article is for educational purposes only and does not constitute financial, insurance, legal, or tax advice. Individual circumstances vary. Please consult with a qualified professional before making any decisions based on this content.
B
- Beneficiary
- The person or entity designated to receive the death benefit from a life insurance policy when the insured person passes away.
- Get a life insurance quote →
C
- Cash Value
- A savings component in permanent life insurance policies that accumulates over time and can be borrowed against or withdrawn.
- Learn about permanent life insurance →
- Claim
- A formal request to an insurance company for coverage or compensation for a covered loss or policy event.
- Get covered today →
- Collision Coverage
- Auto insurance that pays for damage to your vehicle from a collision with another vehicle or object, regardless of fault.
- Get auto insurance →
- Comprehensive Coverage
- Auto insurance that covers damage to your vehicle from non-collision events like theft, vandalism, weather, or animal strikes.
- Explore comprehensive coverage →
D
- Death Benefit
- The amount paid to beneficiaries when the insured person dies. This is the primary purpose of life insurance.
- Calculate your coverage needs →
- Deductible
- The amount you pay out-of-pocket before your insurance coverage kicks in. Higher deductibles typically result in lower premiums.
- Compare coverage options →
- Dwelling Coverage
- The part of homeowners insurance that covers the physical structure of your home against covered perils like fire, wind, or hail.
- Get home insurance →
E
- Exclusion
- Specific conditions, circumstances, or situations that are not covered by an insurance policy.
- Understand your coverage →
G
- Grace Period
- A period after the premium due date during which the policy remains in force even if payment hasn't been received.
- Learn about policy terms →
L
- Liability Coverage
- Insurance that protects you if you're responsible for injuring someone or damaging their property. Required for auto insurance in most states.
- Get liability coverage →
P
- Personal Property Coverage
- Homeowners insurance coverage for your belongings inside the home, such as furniture, electronics, and clothing.
- Protect your belongings →
- Policy Limit
- The maximum amount an insurance company will pay for a covered claim. Coverage limits are specified in your policy.
- Discuss coverage limits →
R
- Rider
- An add-on to an insurance policy that provides additional benefits or coverage not included in the base policy.
- Explore policy riders →
T
- Term Life Insurance
- Life insurance that provides coverage for a specific period (term), such as 10, 20, or 30 years. If the insured dies during the term, beneficiaries receive the death benefit.
- Explore term life options →
U
- Umbrella Insurance
- Extra liability coverage that goes beyond the limits of your home, auto, or other policies. Provides an additional layer of protection.
- Get umbrella coverage →
- Underwriting
- The process insurance companies use to evaluate risk and determine whether to offer coverage and at what premium.
- Start the quote process →
- Universal Life Insurance
- A type of permanent life insurance with flexible premiums and death benefits, plus a cash value component that earns interest.
- Explore universal life →
W
- Whole Life Insurance
- Permanent life insurance that provides coverage for your entire life and includes a cash value component that grows over time.
- Learn about whole life →
Ready to Get Coverage?
Now that you understand the terminology, let's find the right coverage for your needs.