Glossary of insurance terms

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Our insurance glossary contains a brief explanation of common insurance terms. Click on the term itself to be redirected to the page on our site that provides more detailed insurance information. If you don't find the insurance info you're looking for, remember, we're just a call or a click away!

Critical illness insurance - specialized insurance coverage that dispenses a lump sum payment upon diagnosis of a serious illness.

Deductible - the amount of covered expenses that must be paid in order to receive insurance benefits.

Disability insurance - a type of insurance policy that provides monthly benefits when the insured is unable to work because of injury or illness.

Errors & Omissions Insurance - also known as professional liability insurance, E & O covers a policy holder for acts of negligence of omissions when conducting business.

Insurance brokerage - an agency that shops the market for insurance policies for clients; a broker's priority is the client.

Liability insurance - coverage against bodily injury or property damage caused to another person.

Long term care insurance - pays for extensive health care benefits when the insured is unable to care for him or herself.

Long term disability insurance - wage replacement benefits paid monthly over an extended period of time (as defined in the insurance policy).

Malpractice Insurance - specific professional liability coverage for doctors, lawyers and other professionals.

Premium - the cost of an insurance policy.

Product liability insurance - protects the insured against harm or loss caused by a defective product.

Short term disability insurance - short term benefits paid when the insured is unable to work.

Term life insurance - coverage that protects an individual for a specific amount of time as determined in the policy; policies are renewable but premiums increase with age.

Travel insurance - coverage to offset expenses in the event of trip cancellation, lost luggage, illness, etc.

Universal life insurance - a life insurance policy that provides a guaranteed death benefit as well as a cash value account; rate of return on investment is not guaranteed.

Whole life insurance - the oldest form of cash value life insurance; whole life provides a guaranteed death benefit as well as a guaranteed rate of return on investment.