Morehead, Kentucky

Important Insurance Terms You Should Understand June 30, 2017

Morehead, Rowan
Important Insurance Terms You Should Understand, Morehead, Kentucky

Because insurance is such a pervasive presence in everyone's financial life, and because many industry terms are unfamiliar or arcane, Patrick Brent Roark, Nationwide Insurance Agent in Grayson, KY, lists the definitions to the following key insurance terms. This will enable you to better understand your coverage and help you make the right choices when purchasing home, auto, business, or life insurance.

Important Insurance Terms You Need to Know

Deductible

A deductible is the amount you must pay toward a claim before your insurance company will start paying. It is a common feature of home, health, and auto insurance policies, and its purpose is to give you "skin in the game" so that you don't purposefully mistreat yourself or your property knowing that your insurer will bear all the financial burden. With a deductible, you share in that burden.

Liability Coverage

Liability coverage is a component of most auto, home, and business insurance policies. It pays for medical treatments, property damage, and legal costs should you injure someone or damage their property. Depending on the amount of coverage you have, it protects your assets from being consumed due to an unfortunate incident.

Rider

A rider is a formal statement by your insurer stating that an item normally not covered by insurance is, in this case, covered. For instance, although most home insurance policies do not cover earthquakes or floods, you can purchase a rider to add that protection to your policy.

Waiver

A waiver is the reverse of a rider. It is a statement that an item normally covered by a policy is, in this case, waived. Typically, you receive a discount for waiving coverage.

Term Life

insuranceTerm life insurance is a temporary life insurance policy that lasts for a term of years. If you die while the coverage is in place, your beneficiaries receive the death benefit. It is typically inexpensive.

Whole Life

Whole life insurance is a permanent life insurance policy that does not expire after a term. It lasts until death and often features an investment component. It is usually more expensive than term life.

Patrick Brent Roark, Nationwide Insurance Agent, serves clients in Grayson, KY, and throughout Carter County. He offers invaluable advice and guidance on all aspects of buying home, auto, business, and life insurance. Visit his website to learn about the insurance products he represents, or call (606) 474-7818 to request an insurance quote.

Other Announcements, Events and Deals from Nationwide Insurance- Patrick Brent Roark Agent
At What Age Should I Purchase Life Insurance?, Morehead, Kentucky
Contemplating life insurance can feel macabre, but it’s important for your loved ones to be secure in case you can’t be there to provide for them financially. However,...read more
Why Everyone Needs Flood Insurance, Morehead, Kentucky
When you think about protecting your home, you likely focus on purchasing the best homeowners insurance policy possible. While this coverage will help reduce your out-of-pocket expen...read more
3 Tips to Prevent Frozen & Burst Pipes, Morehead, Kentucky
Frozen and burst pipes are a common concern for many people in Kentucky over the winter. Accordingly, Nationwide Insurance agent Patrick Brent Roark offers advice to local clien...read more
Grayson Insurance Agent Shares Winter Pet Safety Tips, Morehead, Kentucky
With its frigid winds and icy conditions, the winter season can be dangerous if you're not prepared. The same is true for pets. That's why owners are strongly encouraged to take extr...read more
The Top 4 Ways You Can Prepare for a House Fire, Morehead, Kentucky
Are you prepared for a potential house fire? While it’s something that’s in the back of most peoples’ minds, few actually have a plan and other precautions in place for such a c...read more