Insurance definitions can be really confusing. Many companies fill brochures will technical jargon, buzz words, and insurance terms that no one really understands. Insurance definitions should be simple and easy to comprehend because understanding health insurance is crucial. Below, you will find a list of common insurance words and definitions that are easy to understand.
- Rider - A rider is optional coverage that you can purchase for additional money. Typically riders are for more dental, sports, or accidental death coverage.
- Deductible- A deductible is what you must pay before your insurance company will start paying. Once you have paid your deductible, then your insurance company will start paying.
- Coinsurance- Coinsurance is the percentage that you must pay towards your insurance bill when you file a claim. Typically, you must pay both the deductible and the coinsurance before the insurance company will pay anything.
- Maximum- The maximum on your policy is the maximum amount that your insurance plan covers.
- Pre-existing- Usually, pre-existing refers to medical conditions that you had before you purchased your plan.
- Pre-certification- Before you have certain procedures done, you must pre-certify, which means that you much check with the insurance company to make sure they will cover and approve the procedure.
- Copayment- When you have a fixed dollar amount that you must pay for a procedure, that is a copayment. The insurance company will pay for the rest of the procedure.
Insurance terms can often be tricky, so before you sign a contract with a company or make payments be sure that you understand everything. Your insurance company should help you understand your policy and what it entails. Are there any other words you would like to have defined? Share your thoughts and questions in the comment section below!