Glossary

The words on the policy

Short definitions for the terms that change a bill. They are a reading aid, not your contract.

The amount you pay to keep a policy in force, usually each month or each year.

The amount you pay on a covered loss before the insurer pays. A wind deductible may be a percentage, not a flat dollar figure.

A fixed dollar amount you pay for a service, common in health plans.

Your percentage of a covered bill after the deductible, such as 20 percent.

The most a health plan requires you to pay in a year for covered, in-network services. Premiums usually do not count toward it.

The summary sheet of names, dates, limits, and deductibles. The exclusions live in the form behind it.

A loss the policy says it will not pay. Flood is a standard homeowners exclusion.

An amendment that adds, limits, or changes the base policy.

Coverage that pays other people when you are legally responsible for injury or property damage.

The cost to repair or replace with something of similar kind and quality, without subtracting age. Actual cash value does subtract wear.

The doctors, hospitals, or repair shops that have a contract with the plan. Out-of-network care often costs more.

The list of prescription drugs a Medicare Part D or health plan covers, and the tier each drug sits on.