Personal Finance vocab terms Flashcards
Insurance
A practice or arrangement by which a company or government agency provides a gurantee of compensation
Deductible (insurance)
The amount you pay for covered health care services before your insurance plan starts to pay
Coverage
The amount or extend pf the protection provided by insurance
Policyholder
a person or group in whose name an insurance policy is held
Claim
When a report is filed with an insurance company
Copay
a payment made by a beneficiary (especially for health services) to the addition to that made by an insurer
Out-of-pocket limit
The most you have to pay for covered services in a year
Liability Insurance (car)
The part of a car insurance policy that provides financial protection for a driver who harms someone else
Collision Coverage
A coverage that helps pay to repair or replace your car if it’s damaged in an accident with another vehicle
Comprehensive Insurance
A coverage that helps pay to replace or repair your vehicle if it’s stolen or damaged in an incident that’s not a collision
Car Insurance
effectively a contract between yourself and an insurance company in which you agree to pay premiums
Homeowners Insurance
combines property and liability insurance into one policy broken down protect a homeowner
Health Insurance
A contract that requires an insurer to pay some or all of a person’s health care costs in exchange for a premium
Renters Insurance
Necessary because a landlord’s insurance policy on a dwelling does not cover renter’s personal possessions
Co-insurance (health)
percentage of a cost, person is responsible for each medical event after yearly deductible is reached
