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.
- RiderAn optional add-on to a policy that expands or customizes your coverage, usually for an extra cost.
- Coverage LimitThe most an insurance policy will pay for a covered loss, above which you cover the rest yourself.
- ExclusionA situation or item a policy specifically does not cover, spelled out so you know where your protection stops.
- BeneficiaryA person or entity you choose to receive assets from a will, trust, account, or insurance policy.
- UnderwritingThe process an insurer uses to assess your risk and decide whether to cover you and at what price.
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Plain-English education — not personalized legal, tax, or investment advice.