Prepare for tomorrow by learning the basics today.

Insurance Basics

We believe informed consumers make happier policyholders. Why? Because they understand and work with their insurance partner to select policies that are right for them. With this knowledge, they can feel confident in their risk management choices. 

Learn more about the basics of insurance, and start making smarter, happier insurance choices. 

General Terms

  • Bundling: Combining multiple insurance policies, typically for a reduction in price.
  • Claim: When an insurance-related incident takes place, policyholders submit a claim with their insurance company. A claim is a request made by the insured to receive financial compensation based on coverage agreed to in the policy held.
  • Co-insurance: When risks are shared between the insured and the insurer. Co-insurance usually refers to the percentage of expenses the insured is responsible for once the deductible has been met (also called co-payment or copay).
  • Commissions: A portion (usually a percentage) of the insurance policy price that is collected by the insurance agent as a service fee. INGUARD consultants don’t collect commissions. Learn more about how INGUARD is changing insurance.
  • Coverage: The degree to which the insurance carrier will protect you under a policy. This includes the circumstances under which the carrier will compensate the insured for loss or damages. 
  • Deductible: The amount you pay out-of-pocket, or directly, for insurance claims or expenses, before a claim is paid by the carrier. Choosing a higher deductible will typically result in a lower premium.
  • Dependents: An individual covered under another’s insurance policy, such as a spouse, child or other qualifying relative.
  • Exposure: The amount or degree of risk, usually expressed in dollars.
  • Indemnity: Compensation for loss or damages that falls within the insurance policy coverage.
  • Insured: The name of the person on the policy, also known as the policyholder or the insured.
  • Insurer: The company/ insurance carrier that writes and backs insurance coverage for policyholders, or the insured.
  • Liability: A known risk, or “exposure,” that results in a financial obligation or responsibility that is legally enforceable. 
  • Limits: The scope of compensation a policy agrees to cover. Limits can be based on number of occurrences or extent of claim made.
  • Occurrence: An accident causing damage or loss that takes place during the policy period, regardless of when the claim is reported.
  • Policy: The binding contract between the insured and the insurer (aka the insurance carrier) that specifies the coverage, limits, premium and deductible.
  • Policy Expiration Date: Not to be confused with your payment due date, this is the date when your insurance coverage expires. It coincides with policy renewals.
  • Premium: The price of insurance paid by the insured, for a specified period of time—i.e. on a monthly, quarterly or annual basis. Premiums are paid throughout the duration of policy coverage.
  • Quote: The price for an insurance policy for a specified period of time.
  • Rate: Similar to a quote, this is the price for an insurance policy premium.
  • Renewal: When an insurance policy remains in effect after the policy expiration date, at which time the policy rate may be adjusted by the carrier, and the policy may be adjusted by the insured.
  • Rider policy: A provision of an insurance policy that is purchased in addition to the policy, in order to provide additional coverage or customize coverage to the insured’s needs.
  • Risk management: A strategic assessment of a person or business’s risks and the coordination of resources to reduce or mitigate risk. Learn more about INGUARD risk management services.
  • Umbrella: A policy that offers additional financial protection, in order to supplement other policies the insured holds.

Whole Life Insurance Terms

  • Cash Value: Part of your life insurance has the capability of earning interest, or can be used as a loan. If money is withdrawn from the account, it will need to match the face value of your policy.
  • Death Benefit: The monetary amount a policy will pay the beneficiary when the insured individual passes away. The amount will increase or decrease based on contributions or withdrawals made to the life insurance policy.
  • Whole Life Insurance: A form of permanent life insurance that offers coverage throughout an insured’s life. Benefits to holding this policy include consistent annual premium payments, the option to increase contributions, face value payment to beneficiaries upon death of insured and cash value loan or withdrawal options. 

Review FAQs

At INGUARD, we believe insurance is more than a policy. It is protection for your life and livelihood—material possessions, financial assets and the people you love. 

Protect and grow your wealth with INGUARD. We work with you to create a program that fits your needs, and will ensure that you are comfortable with the insurance investments you make.

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