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
- PolicyThe written contract between you and an insurer that spells out what is covered, for how much, and under what terms.
- Coverage LimitThe most an insurance policy will pay for a covered loss, above which you cover the rest yourself.
- RiderAn optional add-on to a policy that expands or customizes your coverage, usually for an extra cost.
- ClaimA formal request you file with your insurer to be paid for a covered loss or medical expense.
- DeductibleThe amount you pay out of pocket for covered costs before your insurance starts chipping in.
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Plain-English education — not personalized legal, tax, or investment advice.