The total amount an individual or entity pays for insurance coverage within a given year. It includes all premiums due for the policy’s term, typically payable annually but may vary based on the insurance contract.
The payment made by an insured party to an insurer for coverage under a policy. It can be paid annually, semi-annually, quarterly, or monthly, depending on the terms of the insurance agreement.
The individual or entity that owns an insurance policy. The policyholder pays premiums to the insurer in exchange for coverage as outlined in the policy contract.
The protection provided by an insurance policy against specified risks. Coverage varies depending on the type of insurance policy and can include property, liability, health, life, and more.
A legally binding agreement between the insurer and the policyholder that outlines the terms and conditions of the insurance coverage, including premiums, coverage limits, deductibles, and exclusions.
The process by which insurers assess the risk associated with insuring a particular individual, property, or entity. Underwriting helps determine the appropriate premium to charge based on the likelihood of a claim being filed.
The process of extending an insurance policy beyond its original term. Policyholders may renew their coverage annually or at other specified intervals by paying the required premium.
The amount the policyholder must pay out of pocket before the insurance coverage kicks in. Deductibles can vary depending on the type of insurance policy and are typically inversely related to premium costs.
The practice of identifying, assessing, and mitigating risks to minimize potential losses. Insurance is a key component of risk management strategies for individuals and businesses.
A request made by a policyholder to an insurance company for payment or reimbursement for a covered loss or damage. Insurers investigate claims to determine their validity and may provide financial compensation accordingly.