| A | B |
|---|
| Limited-payment life | coverage for entire life but premiums are higher than whole life because premiums are paid for a set number of years or until a set age |
| Universal life | allows adjustments of premium, face value and level of protection |
| Variable life | premiums are fixed, but face amount varies with investment results |
| Permanent life insurance | (aka cash value life insurance) provides coverage the person’s whole entire life and includes an investment component. |
| Convertible Term | – insured person can change the policy from convertible to permanent without taking a physical. Tends to be more expensive |
| Level Term | premiums and death benefits stay the same for the life of the policy. |
| decreasing term | premiums stay the same but the benefits decrease over the life of the policy (e.g. home mortgage) |
| renewable term | the insured person can renew the policy without taking a physical |
| COBRA – Consolidated Omnibus Budget Reconciliation Act | Gives individuals the right to pay their own premiums and continue employer-sponsored group health insurance plan for a limited time after leaving a job. |
| CHIP – Children’s Health Insurance Program | Health insurance for children under 18 whose parents make too much to qualify for medicaid, but not enough to afford private insurance |
| Medicaid | Health insurance for eligible low income persons |
| Medicare | Covers eligible citizens 65 or older or eligible adults who can no longer work due to illness or disability |
| deductible | the amount you pay during the term (usually one year) before the insurance pays any medical expenses |
| co-payments | Percentage of medical bills you must pay after meeting your deductible. Usually 10, 20 or 30% of the bill |
| preauthorization | prior approval is required from the insurance company before major medical procedures are done. (e.g. surgery, chemotherapy) |
| exclusions | medical expenses the policy will not cover (e.g. teen pregnancy, cosmetic surgery) |
| Pre-existing Conditions- | --An illness or injury that a person has at the time he/she enrolls in a health care plan |
| renewability | A patient’s right to restart coverage annually |
| maximum benefit | A limit on the number of days one’s care will be covered, or the highest amount that can be paid in benefits for a specific procedure |
| open enrollment period | time during which a person considers and chooses their options without cost increases or exclusions. |
