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Glossary


401(k) plan
A retirement savings plan funded by tax-deferred employee contributions. In some cases, employers match a percentage of these contributions.

Accidental death & dismemberment (AD&D) insurance
This policy provides funds in the event of a fatal accident or one that leads to loss of a limb or eyesight.

Additional insured
A person other than the named insured who is protected by an insurance policy.

Adjuster
An insurance company representative who investigates insurance claims to determine the extent of the firm’s liability for loss.

Age limits
Maximum age of an applicant or insured at which an insurance company will not underwrite a risk or continue to insure it.

Agent
A person licensed to sell insurance policies.

Alternative medicine
Practices not generally recognized by the medical community as standard treatments.

Benefit
Money paid in fulfilling an insurance claim.

Broker
An independent insurance agent who represents the buyer instead of the insurance company.

Broker-agent
An individual who acts as an agent of one or more insurers and as a broker in dealing with insurance companies.

Claim
Demand for payment under the terms of an insurance policy.

Copayment, or copay
Small fee paid for a medical service by an insured person.

Cost-sharing
Contribution made by consumers towards health care costs.

Coverage
Total amount and type of insurance carried.

Coverage, Individual
Single insurance policy issued to an individual or family. Policies often cost more and offer fewer benefits than group coverage.

Coverage, Group
Insurance policy issued to a group, such as a business, that covers eligible members and, in some cases, their dependents.

Critical illness insurance
Health insurance policy that pays a lump sum if the insured falls critically ill with a covered condition.

Deductible
Amount of money paid by the insured person for a covered expense before the insurance policy provides benefits.

Dental
An insurance contract that helps pay for dental care.

Disability, long-term
Insurance policy that replaces a portion of lost earnings from disability for a specific time period, typically greater than one year.

Disability, short-term
Insurance policy that replaces a portion of lost earnings from disability for a limited time period, typically less than one year.

Employee benefits
Compensation given to employees in addition to wages or salaries, such as group insurance and retirement benefits.

Exclusion
A loss or risk not covered by an insurance policy.



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