A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- PremiumThe regular payment you make to keep an insurance policy active, usually billed monthly, quarterly, or yearly.
- DeductibleThe amount you pay out of pocket for covered costs before your insurance starts chipping in.
- Explanation of BenefitsA statement from your insurer showing what a service cost, what they paid, and what you may owe, though it is not a bill.
- Actual Cash ValueA claim payout method that reimburses what an item is worth today, after subtracting for age and wear.
- Insurance AdjusterThe insurance professional who investigates a claim and decides how much the insurer will pay.
- PolicyThe written contract between you and an insurer that spells out what is covered, for how much, and under what terms.
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Plain-English education — not personalized legal, tax, or investment advice.