| A | B |
|---|
| RISK | Chance of loss from an event that cannot be entirely controlled |
| EMERGENCY SAVINGS | At least six months of expenses set aside to cover costs of unexpected expenses |
| INSURANCE | A financial product purchased by many people facing a similar risk to protect against the risk of larger losses |
| INSURANCE POLICY | A contract that specifies what risks are covered and how much will be paid for losses |
| COVERAGE | Risks covered and amount of money paid for losses under an insurance policy |
| POLICY HOLDER | Person who owns the policy |
| PREMIUM | Money paid to purchase the policy |
| CLAIM | A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury. |
| DEDUCTIBLE | The out‐of‐pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss. |
| CO-INSURANCE | Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid. |
