Common Insurance Terms
(Explained in Simple English)
English Vocabulary Lessons
This section will help English learners gain a
better understanding of insurance terms and definitions.
By learning insurance-related vocabulary, English learners can
become more confident when discussing insurance or working in
Key insurance concepts and terms will be explained in simple and
Insurance is a type of agreement between insurance companies and
those they insure (the insured). With insurance, the insurance
company agrees to provide financial protection to the insured in
exchange for a periodic premium payment. Insurance provides
protection against risks, such as damage to property and financial
loss due to accidents or tragedy.
the person designated by insurance policyholders to receive
insurance payouts in the event of their death.
a request for payment made by insurance
companies to those they insure.
the specific risks that are
covered by an insurance policy. For example, property insurance may
cover damages to a house caused by fire, theft, or weather events.
the amount of money that must be paid out-of-pocket by the insured
before insurance coverage kicks in.
additions or changes to insurance
policies that change the terms of coverage.
risks or losses that are not covered by
a period of time during which
insurance coverage is still in effect despite not having paid the
a document that outlines the insurance
coverage and terms of agreement between insurance companies and the
the maximum amount of money that an
insurance company will pay for a claim.
the periodic payment made to insurance companies for insurance
an insurance policy addition or amendment.
the process of evaluating insurance
applicants to determine insurance eligibility and the associated
Insurance comes in many forms, each type providing protection
against different risks. The most common types of insurance are property
insurance, and travel
Property insurance provides protection for losses or damage to the
or other property
Property insurance typically includes coverage for risks such as
fire, theft, and vandalism.
Liability insurance protects you if someone gets hurt or their
property gets damaged because of something you did
or didn't do
. Common types of liability insurance
include auto insurance, umbrella insurance, and professional
(also known as car
) helps protect you financially if there is an
accident with your car.
provides additional insurance
coverage for accidents and injuries that exceed the limits of your
other insurance policies. For example, If you are in a car accident
and the other driver's medical bills are more than your car
insurance policy limit, your umbrella insurance policy can provide
Professional liability insurance
(also known as errors
and omissions insurance
or E&O insurance
can help protect you from financial losses if you are sued for
Health insurance is insurance that covers medical expenses
Health insurance typically covers the cost of visits to doctors,
hospitals, and other health care providers.
Travel insurance provides protection against certain risks
associated with travel
. For example, it may cover
the cost of lost luggage, travel delays, and medical emergencies
that occur while traveling.
Disclaimer: This English vocabulary lesson is
for informational and educational purposes only. It is not
intended to be a substitute for professional advice.
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