Does the topic of insurance often confuse or frustrate you? Whether you’re talking about life insurance or auto insurance, far too often, policies are explained in complicated terms. However, a knowledge of standard insurance terms is something that everyone should have. The team at Robert Taylor Insurance has been providing quality insurance products to the Lorain, OH, community since 1989. Below, they outline five insurance terms that everyone should understand. 

The Top 5 Insurance Terms That Everyone Needs to Know

1. Premium

An insurance premium is the monthly, annual, or bi-annual amount that you will pay to remain covered under a specific insurance policy. This term refers to auto insurance, home insurance, and life insurance costs. If you miss a premium payment, your coverage will lapse. However, some insurance policies provide a grace period, in which you can maintain coverage after the premium is due.

2. Fiduciary

When an insurance agent sells you a policy, they are acting as your fiduciary. This is a person who has sworn to provide you with a service ‘in trust’. If a life insurance policy is offered, they have a fiduciary responsibility to only provide you with a product that meets your needs. Before working with an agent, review their history within the industry, including whether or not they have the appropriate licensing and accreditation. 

3. Provider Network

In medical insurance, providers and medical professionals you visit will either fall in-network or out-of-network. In-network providers have agreed to specific rates that your insurance company has contracted with them. By choosing an in-network provider, you will receive more coverage and better rates than if you choose an out-of-network provider. 

4. Deductible

The deductible is the dollar amount that you will pay before your insurance kicks in. This term is often used in medical, dental, and auto insurance policies. Once your deductible is satisfied, you will only be required to pay any copays or coinsurance.

5. Copay & Coinsurance

Once your deductible is satisfied, your insurance might require you to pay a copay for specific visits, as well as coinsurance for any tests or procedures that might be done during the visit. For example, if you visit your medical specialist, your insurance might charge you $30 for the visit copay. If you were to have lab tests done, they might require you to pay 20% of the contracted rate while they pay the rest.

If the idea of insurance overwhelms you, it’s best to sit down with a professional insurance agent and ask specific questions. A basic understanding of common insurance terms is something everyone needs. Call the professional and caring staff at Robert Taylor Insurance today at (440) 277-5191 or visit their website for more information. They can provide health, car, and life insurance policies to meet your needs, and they’re happy to help.