Glossary
Health Insurance
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Life
Insurance
Health
Insurance
Coinsurance
The amount you are required to pay after you have met your
deductible. The coinsurance rate is usually an expressed percentage.
Example: If the insurance company pays 80% of the claim. You pay
20%.
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Co-payment or Co-pay
Refers to the payment that must be made at the time of service
for Physician Office Visits.
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Deductible
Is a specified dollar amount which must be paid by the
covered individual in each deductible accumulation period before
payment of benefits will be made by the insurance company.
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Emergency Services
Services provided within 48 hour of an injury or medical
emergency.
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Exclusions
Services provided within 48 hour of an injury or medical
emergency.
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Medical Emergency
The sudden onset of a medical condition with acute
symptoms of severity that the absence of immediate medical condition
could result in:
A) permanently placing
the patients health in jeopardy;
B) causing other serious medical consequences;
C) causing serious impairment to bodily functions;
D) causing serious and permanent dysfunctions to any body part;
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Medical Necessity
Describes health care treatments, services or supplies
which are appropriate and consistent with the diagnosis and
treatment of a medical condition according to generally accepted
medical standards.
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Out-of-pocket expenses
Refers to the amount a covered person
will have to pay “Out of their pocket” in a calendar year.
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Pre-existing condition
Condition for which a person received medical care,
treatment, services, medication, diagnosis, or consultation 12
months prior to the insured person’s effective date of coverage or a
condition that produced symptoms that are distinct and significant
enough to establish the onset of a condition or that the condition
manifested itself, where a person learned in medicine would be able
to diagnose the condition because of those symptoms.
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Premium
The amount you pay in exchange for insurance coverage.
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Provider
Any person (Doctor, Nurse, Dentist) or institution
(hospital or clinic) that provides medical care.
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Life
Insurance
Annual Premium
The Annual
Premium is one of the four modes of premium you can select to pay
your policy. Many of the insurance companies will give you a
discount for paying your policy annually.
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Annuity
Payment of a fixed sum of money to a
specified person at regular intervals
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ART (Annually
Renewable Term)
This is a term
policy where the premium increases a little bit every year and the
coverage stays the same.
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Beneficiary
This is the entity that life insurance
proceeds are passed to when an insured dies. This can be a person,
trust, or estate.
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Bequest
An old legal term for a will provision
leaving personal property to a specified person or organization.
Also known as a "gift".
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Contingent
Beneficiary
This is the
entity that a life insurance benefit would pay to if the primary
beneficiary deceased before the insured.
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Contestability Period
In most cases the
life insurance company has two years to find any material
misrepresentations in a contract.
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Conditional
Receipt
This allows you
to bind your life insurance coverage by submitting your first two
months premiums with your life insurance application and medical
exam.
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Cash Surrender
Value
The amount of
money you can receive if you surrender your life insurance policy or
annuity. If there is a policy loan, the cash surrender value is the
difference between the cash value printed in the policy and the loan
value to pay the premiums.
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Death Taxes
Taxes levied on
the property of a person who died. Federal death taxes are called
"Estate Taxes." State death taxes (if any) go by various names,
including "inheritance tax."
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Evidence of
Insurability
This is proof
that you are an acceptable risk. You have to meet the standards of
the insurer regarding age, health, occupation and such other
standards as the insurer feels necessary to be eligable for
coverage.
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Final
Beneficiaries
People or
institutions designated to receive life estate trust property
outright upon the death of the life beneficiary.
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Generation
Skipping Trust
Estate Tax
savings trust where the principal left in trust is for
grandchildren, with one's children only to receive the income from
the trust.
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Gift Taxes
Taxes levied by
governments on gifts made during a person's lifetime.
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Heirs
Persons who are entitled by law to
inherit one's estate if you don't leave a will or other device to
pass property at your death.
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Irrevocable
Trust
A type of trust
that once established cannot be changed.
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Joint Tenancy
Two or more
people own property as joint tenants, and one of the owners dies,
the other owners will automatically become owners of the deceased
owner's share.
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Living Trusts
A trust set up
while a person is alive and which remains under the control of that
person until death.
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Net Taxable Estate
The value of all
your property at death less all encumbrances and your other
liabilities.
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Ongoing Trust
A trust that is
designed to be irrevocable and be operational for an extended amount
of time.
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Premium
The payments you make on a life
insurance contract. Premiums can be paid monthly, quarterly,
semi-annually, or annually.
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Permanent Life
Insurance
A life insurance
contract that is designed to go to age 100. These policies build
cash value.
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Right of
Survivorship
The right of a
surviving joint tenant to take ownership of a deceased joint
tenant's share of the property.
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Suicide Clause
Says that if you
commit suicide after being insured for less than two years, your
beneficiaries will receive only a refund of the premiums that were
paid.
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Surrender
You surrender a life insurance policy
when you either let it lapse or tell the company that you want to
drop it. If a policy has a cash surrender value, you can receive
such value in cash minus any penalties if you return the policy to
the company with a written request.
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Term Life Insurance
Insurance
coverage that has no cash value and is designed for a specified
period of time such as 5,10,15,20,25, or 30 years.
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Will
A legal document where a person states
various binding intentions about what he or she wants done with his
or her property after death.
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