| A | B |
|---|
| homeowner's insurance | combines property and liability insurance into one policy to protect a home from damage costs due to perils |
| peril | an event that can cause a financial loss from fire, falling trees, lightning, and others |
| property insurance | protects the insured from financial losses due to destruction or damage to the property or possessions |
| liability insurance | protects the insured from financial losses due to being held liable for other's losses |
| renter's insurance | protects the insured from loss to the contents of the dwelling |
| insurance | arrangement between an individual and an insurer to protect the individual against risk |
| policy | contract between the individual and the insurer specifying the terms of the insurance arrangements |
| premium | the fee paid to the insurer to be covered under the specified term |
| deductible | the amount paid out of pocket by the policyholder for the initial portion of a loss before the insurance coverage begins |
| policyholder | the consumer who purchased the policy |
| risk | uncertainty about a situation's outcome; an unpredictable event that can lead to loss or damage |
| term insurance | a type of insurance that provides coverage for a specified period of time with no investment benefits |
| 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., for home mortgage |
| renewable term | the insured person can renew the policy without taking a physical |
| convertible term | the insured person can change the policy from convertible to permanent without taking a physical |
| permanent life | provides coverage the person's entire life and includes an investment component |
| whole life insurance | a type of insurance that provides coverage for a whole lifetime and grows in face value as premiums and cash accumulate |
| universal life | allows adjustments of premium, face value, and level of protection |
| variable life | premiums are fixed, but face amount varies with investment results |
