Glossary of Insurance Terms
Trying to make sense of all those insurance terms? At HDF, we work for you! That includes providing resources to help you make informed decisions about personal or professional protection.
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 such as cancer, stroke or heart attack.
the amount of covered expenses that must be paid by you 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 performing your professional duties.
- 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 by you, to another person.
- Long term care insurance
pays for facility or home care 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.
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.