Lesson 1

Key Terms 

Insurance: an arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer
Policy: the contract between an insurance company and the insured individual
Coverage: the amount of liability protection offered to an individual through an insurance policy
Premium: the amount of money paid for an insurance policy
Grace Period: the amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage
Deductible: the amount of money you will pay out of pocket before the insurance company will make a payment
Claim: a formal request by a policyholder to their insurance company for compensation for a covered loss
Copays: (also copayments or coinsurance) the payments an individual makes each time they get medical service
Out-of-Pocket Maximum: the most a policyholder has to spend for covered services in a year 

Lesson 2

Key Terms

Liability Insurance: protection against claims resulting from personal injury or property damage as the result of an auto accident
Collision Insurance: protection for damage to your car resulting from a collision with another car or object
Comprehensive Insurance: protection for loss or damage to your vehicle caused by something other than a collision (such as vandalism)​​​​​​​
Uninsured/Underinsured Motorist Protection: protection for you and passengers if you‘re hit by an uninsured or underinsured motorist, or if you are the victim of a hit-and-run
Personal Injury Protection (PIP): a component of auto insurance that pays for medical expenses, lost wages, and other financial losses of the driver and passengers of the policyholder’s vehicle

Lesson 3

Key Terms

Homeowners Insurance: protection for losses to a private residence and the possessions within it, as well as liability coverage against accidents in the home or on the property
Renters Insurance: protection for destroyed or stolen personal property for a renter
Umbrella Insurance: optional extended liability coverage that can be added to auto and homeowners policies

Lesson 4

Key Terms

Health Insurance: coverage for an individual’s (or family‘s) medical expenses from illness or injury
Affordable Care Act (ACA): also known as Obamacare; the health care reform law enacted in 2010, intended to make affordable health insurance more available​​​​​​​
Subsidizing: the practice of employers paying for a portion of their employees‘ insurance premiums​​​​​​​
Health Insurance Marketplace: a platform where individuals, families, and small businesses can compare health insurance plans​​​​​​​
High-Deductible Health Plan (HDHP): a health plan with a high minimum deductible for medical expenses​​​​​​​
Health Savings Account (HSA): a tax-exempt savings account dedicated to health care costs; only available for individuals on a high-deductible health plan (HDHP)
Lifetime Limit: the maximum amount of lifetime benefits a person can receive from their insurance company

Lesson 5

Key Terms

Beneficiaries: people who are designated by the policyholder to receive the death benefit of a life insurance policy
Death Benefit: benefit paid to the beneficiaries after the policyholder dies​​​​​​​
Term Life Insurance: life insurance for a specified amount of time; at the death of the policyholder, the insurance company pays the death benefit to the beneficiaries​​​​​​​
Whole Life Insurance (or Cash Value): life insurance that lasts for the life of the policyholder and uses a portion of the premium as an investment​​​​​​​
Self-Insured: having enough money saved and invested so a spouse or loved one could live off of it when you die, eliminating the need for life insurance​​​​​​​
Dependent: a person who relies on someone for financial support​​​​​​​
Actuarial Life Table: life expectancy chart used by insurance agents to figure out life insurance premiums for an individual based on a variety of factors

Lesson 6

Key Terms

Disability Insurance: a type of insurance that will replace a portion of the policyholder’s income in the event that the policyholder becomes disabled and is unable to work
Elimination Period: the period of time between when a doctor confirms a disability and when the policyholder receives a disability payment​​​​​​​
Identity Theft: the act of fraudulently gaining and using the personal information of someone else, usually for financial gain​​​​​​​
Long-Term Care Insurance: a type of insurance that covers some or all of the costs of nursing home care, assisted living, in-home care, and other end-of-life care​​​​​​​
Supplemental Insurance: plans to cover expenses and services not on typical policies