Office of Enrollment Management

Insurance

 

What is Insurance?

Insurance is a policy that is purchased to move risk from you to the insurance company. The company will pay a claim if something occurs to what was covered. Insurance is not a fun purchase, but a necessary purchase. Sometimes insurance is required by law.

What can be insured? Almost everything…

Terms

Premium

the amount paid to hold the policy, sometimes paid monthly, semi-annually, or annually

Deductible

amount you need to pay before the policy will begin to pay

Term

length of time you have the policy

Beneficiary

the person identified to receive the payment of the policy

Claim

the request for payment from the insurance company

Limits

total amount that the insurance company will pay on the claim

Rider

an amendment or addition to a policy, such as child or jewelry rider

Understand insurance terms with Nationwide's definitions.

Consider where you would like to reduce your risk and transfer it to a third party. Would you be able to cover the cost of a house fire out of pocket? If not, homeowner’s or renter’s insurance would transfer the risk. Some insurances are required by law, such as car insurance.

Insurance required by law often has a minimum coverage requirement. You need to evaluate if the minimal coverage is adequate for your situation.

Resources

Forbes: Types of Insurance