Insurance Glossary - Understanding Common Terms
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The Insurance Glossary is divided alphabetically in a quick reference guide to
better assist consumers that need to find and understand terms commonly used by insurance companies.
Policy documents contain a number of these terms because they typically define
the limitations of risk and liability for the insurance coverage issued.
If you plan to start a new policy or renew your current policy with a different
carrier or agency, it is important to review and understand the differences
behind individual policy quotes from multiple carriers. Lower policy
premiums may be the result of decreased benefits, higher deductibles, or maximum
damages allowed. It is important to identify these unique features in any
policy comparison, otherwise a lower price may come at a much higher cost when
you have to file a claim in the future.
Select the first letter of the word or term to locate a definition and brief description.
For example, to get help with the terms "Property
Damage Coverage" or "Premium", select either the letter ( A
) or ( P ) from the
menubar below:
Insurance Terms: Glossary Page '123'
401(k) Plan:
A salary reduction plan that allows employees to contribute a portion of their salaries on a tax-deferred basis. When this type of employee benefit is available to you, you should give it serious consideration. Many employers match contributions that you make to a 401(k) plan. See also Defined Contribution Plan.
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