types of insurance vocabulary listjh367.k12.sd.us/documents/personal_fin/chap_12/1.10... · types...

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Types of Insurance Vocabulary List

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T Automobi le insurance Provides pavments for both l iabi l i tv and property insurance on a vehicle1L Beneficia ry Someone who receives insurance monev i f the insured person dies

5Cla im The paperwork descr ibing the accident, i l lness or injury that is submitted to the

insurance oreanizat ion

ACo-insu ra nce An amount of money, afterthe deduct ible, that is paid for jo int ly bythe insured

and the insurance companv5 Coverage The r isks covered and amount of money paid for losses under an insurance pol icy

6Deduct ible The amount paid out of pocket by the pol icyholder for the ini t ia l port ion of a loss

before the insurance coverage beginsDependent Someone who rel ies on someone else for money and care

6Disab i l i t v insurance Provides payment to replace earnings during t imes when workers cannot work due

to i l l ness or in iu rv9 Emergency savings Cash set aside that can be used to coverthe costs of unexpected events

10Employee benefits Products or services provided by an employer that adds extra value for employees

beyond wages paid

11.Hea l th insurance Provides money to pay for health care for i l lness, in jury, or, in some cases,

preventive care

12Homeowners insuranceProvides payment to cover l iabi l i ty losses as wel l as damage and loss of the home

and i ts contents

t-5

Household oroduct ion Doing something in the home without pay that takes raw mater ials along with afamily member's ski l l , experience, knowledge, and household equipment, toproduce a useful product or service

T4 In-k ind income The provision of a product or service rather than cash

I )I nsu rance A product that t ransfers r isk from an individualto an insurance company or

orga nizat ion

l-oLiabi l i tv insurance Provides payment to others i f a member of the insured household accident ly

causes harm to other people or property17 Life insurance Provides payment to benef ic iar ies i f an insured person dies

18Long-term careinsu ra nce

Provides payment for extended care due to accidents, i l lness, or old age

t9Moral hazard When the act of insurins an event increases the l ikel ihood that the event wi l l

ha ppen

zvPol icy An insurance contractthat states what r isks are covered and how much moneywil l

be oaid for losses21. Pol icvholder A person who owns the pol icy22 Premium The money paid to an insurance company to purchase a pol icy

23Property insurance Provides payment to the insured person i f property is damaged or destroyed by an

accident

z+Renters insurance Provides payment to renters to coverthe damage and loss of property in a rental

unit in addit ion to l iabi l i tv losses25 Risk The chance of loss from an event that cannot be ent irelv control led

O Family Economics & Financial Educat ion - Updated May 2012 - Types of Insurance

THE UN lVERSlf i Fu nded by a gra nt f ro m Take Charge Ame r ica, I nc. to the No don School of Fa m i ly a nd Co ns! mer sciences Ta ke Charge Ame r ica lnst i tute at The U n Mersi to of Ar izona

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