Things You should know before buying insurance.

If you are a business person and you want your business to keep surviving even after you might have left this world. One of those things you can not afford to take off your plan is the insurance of your business. Nobody pray for bad occurrences, but if it happened, it can bring your business to a halt except you have an insurance cover. So also as it relates to our personal lives.

However, in buying insurance there are so many jargon that you will likely come across which makes it different from every other professional fields. That's why I called it "insurance jargon", some of which 'am going to explain here. You being a graduate of English language does not qualify your ability to understand some of this terms except you've gone for a special training in that regards.

Broker

This is the person that represent the insurance buyers, not a companies.

Beneficiary

This is the person named in a life insurance policy to receive the insurance proceeds at the death of the insured.

Depreciation

If you are accountant, this definition is similar to the usual one you might have known. It is the decrease in the value of an asset due to use, deterioration, or the passage of time.

Group insurance

This is a special insurance issued to an employer for benefit of employees  or to the members of an association.

Coinsurance

A clause or provision that requires the insured to share in a certain percentage of medical expenses such as 80/20 or 90/10(the insurance company pays 80%/90%; the insured pays 20%/10% of expenses), sometimes called co-insurance.

Health Maintenance organization(HMO)

An organization that provides a wide range of comprehensive health care services to member who prepay a fixed periodic fee for the service.

Automobile insurance

It is the type of insurance that pays for loss to individuals or property from an auto accident, theft, or other perils specified in the insurance contract.

Dividend

This is a return of part of the premium to the policy holders of insurance from a participating company when earnings exceed costs.

Actual cash value

A claim settlement method in which the insured receives payment based on the current replacement cost of damaged or lost item, less depreciation.

Accidental death and dismemberment insurance.

This is insurance that pays the insured in the event of death or loss of limb or eye resulting from an accident.