| A | B |
|---|
| Premiums | Monthly, quarterly or annual payments you make to be covered. |
| Co-pay | Set amount you pay for office visits. |
| Deductible | Amount that you pay for covered expenses before insurance kicks in. |
| Coinsurance | Percentage of costs that you’re responsible for after paying the deductible. |
| Out-of-pocket maximums | Top limits on what you have to pay every year. (Premiums are excluded in these totals). |
| Explanation of benefits | Statement that describes what costs your insurance company will cover for a claim. |
| Coverage limits | Lifetime & annual limits of what the insurance coverage will cover. |
| Exclusions | Services not covered by your insurance company. |
| High Deductible Health Plans (HDHP’s) | These are plans with very high deductibles (2020 minimums $1,400 individual/$2,800 families) but carry lower premiums. |
| Health Insurance Portability & Accountability Act (HIPAA) of 1997 | Stated that waiting periods are no longer permitted for pre-existing conditions. This is in reference of moving from one plan to another. |
| Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 | Continues former employers insurance for 18 months (29 months if disabled) but you now are responsible for all premiums + 2% administration fee. |
| Affordable Care Act (ACA) of 2010 | Controversial program since it started and it’s future is uncertain. Premium tax credits were created to make coverages more affordable and requires that everyone carries health insurance or pay a penalty. |
| Most common optional deduction at work | health insurance. |
| Cafeteria Plans | These are build your own plans from a “menu” of options. Tax benefits exist by reducing your pre-tax income. In these plans you must spend them in a calendar year or lose them. |
| Stock options | Allows for purchase of company stock at a set price. These values can rise or fall so risk is associated with these. Options are used in place of direct compensation (wages) or in place of cash bonuses. |
| Vesting (being vested) | Period of time for a company before eligible for benefits. |
| Health Savings Accounts (HSA’s) | These accounts allow you to set aside pre-tax income for current & future health care needs. |
| To be eligible for an HSA | you must be enrolled in a HDHP plan. |
| Custodian | These are financial service providers that setup and run your plan. |
| Disability Insurance | Most pay 50-70% of your income, and carry a cap on the total you can be paid. Once those caps ar |
| Disability insurance policies can take 60-90 days to determine disability and begin paying benefits | elimination period |
| exclusions | policies will not cover disabilities caused by: drug abuse, attempted suicide, criminal actions of your doing |
| Renewability | how insurance policies will allow someone to renew an end-of-term policy |
| Waiver of premium | stop premiums while benefits are being received. |
| bundling | discounts for multiple lines of insurance for current clients |
| Cash value policy | Claims that pay on what items worth at time of loss |
| Replacement value policy | claims on what similar items cost today |
| riders | add-ons to policies to cover what is not covered in the policy |
| Named perils (dangers) | spells out what is covered in the policy and excludes all others. |
| At-Fault | protects you if an accident you caused hurts or kills someone. |
| Death Benefit | amount to be paid upon death of the insured |
| Beneficiaries | Individual(s) being paid the proceeds from a covered insured |
| Term Life | Terms of years you are covered. These follow the Theroy of Decreasing Responsibilities. |
| Whole Life | Life insurance plus savings (tax-free) cash values can be borrowed or used to pay premiums in some policies |
