Insurance & Risk Protection Financial Terms & Definitions

25 terms in this topic

This topic encompasses various insurance policies, such as life, health, property, and liability insurance, as well as risk management techniques like hedging and diversification. The goal is to safeguard individuals and businesses against financial instability caused by unexpected incidents.

P

Premium

In the context of insurance, a premium is the amount of money you pay to an insurance company in exchange…

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R

Rider

A rider is an amendment or attachment to an insurance policy that modifies the standard terms, coverage, or benefits. Riders…

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U

Underwriting

Underwriting is the process by which a lender, insurer, or investment bank evaluates the risk involved in a financial transaction…

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HSA (Health Savings Account) An HSA, or Health Savings Account, is a tax-advantaged savings account that you can use to pay for… Long-term disability insurance Long-term disability insurance (LTD) is a type of insurance policy that provides income replacement if you become unable… Out-of-pocket maximum The out-of-pocket maximum is the most money you will have to pay for covered healthcare services in a… Policy limit A policy limit is the maximum amount an insurance company will pay for a covered loss under an… Premium In the context of insurance, a premium is the amount of money you pay to an insurance company… Renters insurance Renters insurance is a type of policy designed specifically for people who rent their home or apartment. It… Rider A rider is an amendment or attachment to an insurance policy that modifies the standard terms, coverage, or… Short-term disability insurance Short-term disability insurance (STD) is a type of insurance policy that provides partial income replacement for a limited… Term life insurance Term life insurance is a type of life insurance policy that provides coverage for a specific period, or… Umbrella policy An umbrella policy, also known as personal umbrella insurance, is an extra layer of liability insurance that goes… Underwriting Underwriting is the process by which a lender, insurer, or investment bank evaluates the risk involved in a… Universal life insurance Universal life insurance is a type of permanent life insurance that offers flexible premiums, adjustable death benefits, and…