Some Important Words in Insurance You Need to Understand Before Buy Insurance
There are a lot of strange but important word in insurance people need to know if they have intention to buy insurance. People may be feels so frustrating because of it. To avoid this condition, you need to understand some words that often appear when you want to buy insurance. You may not strange with the words premium and policy. But still, those words have specific meaning in insurance.
Important Word in Insurance
Even policy means rule but people cannot define this word as simple as that cause in insurance this word mean legal contract between insurance agency and client. You maybe will see others strange words. These are some important and basic words you may be need:
Underwriting is one of important word in insurance that people rarely know. Underwriting is the process of the client identification. The process will examine whether the client is allow to be part of the insurance agency client or no. The insurance agency will examine their financial risk that predict will happen in the future, if the risk is can be guarantee, the agency will accept the client policy.
- Coinsurance and Copay
Of course you have to pay monthly or annual premium to insurance agency if you have signed the contract. Sometimes, you need to pay coinsurance or copay. Coinsurance and copay is additional payment for special healthy treatment that not list to your insurance policy. The other condition obligates you to do copay or coinsurance usually because of special healthy treatment that need much money.
- Endowment Plan
Some of insurance benefits are investment, saving and protection for the client. There are some clients want to those complete benefits, so there’s an endowment plan in insurance. Endowment plan is one of important word in insurance people rarely know. The definition of endowment plan is insurance planning that gives many benefits those are Protection and saving, in some condition, it could be an investment too.
The insurance client has the right to claim their insurance in special case, condition and time. Then, what is claim? So claim is the right of client to ask their right through the facility or treatment that they allow to get from the insurance. It could be money compensation or special treatment to the object of insurance.
Those are some important word in insurance people need to attention before buy insurance. They maybe still don’t really understand about those important and basic words. Learning those words before or while read some rules or policies of the insurance you want to take may be able to help you.