Glossary of Insurance Terms

Being well-versed in common insurance in Phoenix terms will help you select a better policy. Here are the must-know insurance terms for any prospective buyer.

Actuary – an insurance professional that analyzes statistical information to determine rates and rating methods for insurance in Phoenix.

Annuity – type of life insurance in Phoenix that pays periodic amounts of income over a specific period of time to the beneficiary.

Complaint ratio – measurement kept by most state departments of insurance to track the number of complaints an insurance company receives per every 1,000 policies written.

Deductible – the amount of the loss paid by the policyholder out of pocket. May be specified as a percentage of the claim or a fixed amount depending on the type of insurance in Phoenix policy.

Exclusion – stipulation in an insurance policy that prohibits coverage for certain people, risks, locations, and property classes.

Liability coverage – insurance for the money a policyholder is legally obligated to pay as a result of bodily injury or damaged caused to another party.

Permanent life insurance – insurance in Phoenix that provides lifetime life insurance protection. Your beneficiaries will receive a death benefit when you die. May accrue cash value over time.

Premium – the cost of an Insurance in Phoenix policy, typically paid annually or semiannually. The quotes we provide you with on insurance in Phoenix will be estimates of the premiums you will pay for your policy.

Term life insurance – provides temporary life insurance protection for a relatively small cost. Protection ceases when the term expires.