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Learn More About Basic Insurance Terminologies
You’re not well covered until you choose the right insurance company. Choosing the right company is one but knowing the basic terms used in insurance is another essential thing. If you may have come across some terminologies that you didn’t understand, we are here to help clients in Pflugerville, TX.
The truth is that it’s tough to choose the right coverage if you cannot distinguish between common insurance terms like deductible and premium. Some of the common insurance jargon you should know, include:
Acts of God
This term is often associated with a supernatural being; however, we refer to it as an event attributed or ascribed to natural causes in insurance. These events’ occurrences aren’t fueled by humansand can neither be prevented or predicted. In such cases, no one is held accountable or responsible.
Insurance Deductible Amount
You’re likely to encounter this in a health insurance policy. A deductible is an amount one needs to settle before their insurance company commences to pay the remaining amount or take over the payments.
The Insurance Premium
An insurance premium is the specified amount of cash you’re required to pay to an insurance company for your insurance policy. This kind of payment is done on a basis, let’s say yearly, for policies covering auto, home, life, and healthcare insurance.
Premiums can be paid as a single payment, regular payment, or limited payment. However, it is essential to note that the higher the coverage, the higher the premium, and vice versa.
Sum Assured or Coverage
If you have life insurance, you might have come across this term. Typically, the sum assured is the total amount the insurer contracts to settle upon the insured individual’s death.
We hope the above terms have given you a good start, but the truth is that there is way more than the discussed above insurance lingo. Thankfully, you don’t need to be an insurance guru to get reliable personal or business coverage. At TWFG Pflugerville in Pflugerville, TX we cover you and help you understand everything about your insurance policy. Have a question? Ready to find the right insurance plan? Reach out to us and experience top-notch insurance services you can count on.
