The world of insurance can be very simple to understand for some, and very complex for others. For those who work and move within it, the words and concepts that are used are part of their day to day. But, for those who do not, it is important that they become familiar with them. This way it is easier to understand what is being bought and not get lost in the process.
For this reason, we put together a group of basic concepts to start understanding them.
Policy
It is the document that supports your insurance contract.
co payment
It is the amount of money that a patient with health insurance pays for each health care service, such as a doctor's visit, laboratory tests, prescription drugs and hospital stays.
Deductible
When taking out insurance with a deductible, in the event that your insured property suffers damage, you will pay a certain part of it. The insurance covers the amount that exceeds that deductible.
Insurance carrier
It is the company that sells insurance policies.
insurance broker
They are people who advise you on contracting and using insurance. They are the mediator between the client and the insurer.
Waiting period
It depends on the insurance you take out, it is the initial period in which the coverage is not active.
grace period
It is the initial period, in which the diseases that are diagnosed to the insured will not be covered.
Renewable annual sum insured
It means that the agreed sum insured is returned to the 100% upon renewal of the policy term. Regardless of whether in the previous term the sum was used partially or in its entirety.
These are some of the words that will be repeated the most when you hear about insurance. So in your next conversation on the topic, don't forget to have this note handy.
