Insurance can be a complex industry with a lot of jargon and technical terms. Here are some common terms and concepts you, the policyholder, need to know:
- Premium
This is the amount of money you pay to an insurance company in exchange for coverage on, for example, boat insurance. Premiums are usually paid on a monthly or annual basis.
- Deductible
This is the amount of money you pay out of pocket before your insurance coverage kicks in. For example, if you have a $1,000 deductible on your auto insurance policy and you get into an accident that causes $5,000 in damages, you would pay the first $1,000 and your insurance company would cover the remaining $4,000.
- Coverage limits
This refers to the maximum amount of money an insurance company will pay out for a particular type of claim. For example, if you have a $100,000 liability coverage limit on your auto insurance in Hialeah, Florida and you get in a car accident and sues you for $200,000, your insurance company will only pay out up to the $100,000 limit.
- Co-pay
This is a fixed amount of money you pay out of pocket for certain types of medical expenses, such as doctor’s visits or prescription medications.
- Premium tax credit
This is a tax credit available to individuals who purchase health or life insurance in Miami, Florida, through the Affordable Care Act (ACA) and meet certain income requirements.
Understanding these terms and concepts is crucial for making informed decisions about insurance coverage and for ensuring you have the protection you need in the event of an accident or unexpected event.
J.E. Insurance Associates DBA Amco Insurance offers Medicare in Miami, Florida.