Glossary

Insurance terms, explained plainly

Policy documents are full of jargon. Here are the terms that come up most often when we talk through your coverage.

Beneficiary
The person or entity named to receive the payout from a policy, most often used in life insurance.
Broker
An independent professional who compares policies across insurers on your behalf and represents your interests, not the insurer's.
Claim
A formal request to your insurer for payment following a loss covered by your policy.
Co-insurance
The share of a covered cost you pay yourself after any deductible has been met.
Deductible
The amount you pay out of pocket before your insurer starts covering a claim.
Direct billing
An arrangement where the insurer pays the hospital or provider directly, so you don't pay upfront and claim it back.
Evacuation / Medevac
Emergency transport to the nearest facility capable of treating a serious condition, typically included in international health plans.
Exclusion
A specific situation, condition or item that a policy explicitly does not cover.
Indemnity
Compensation intended to restore you to the financial position you were in before the loss — not to leave you better off.
Insured
The person or entity a policy protects.
Insurer
The company that underwrites the risk and pays valid claims.
No-claim bonus
A discount or benefit earned for not making a claim during a policy period.
Policyholder
The person or entity that owns the policy — usually the same as the insured, but not always.
Premium
The amount you pay, usually annually, to keep a policy in force.
Public liability
Cover for injury or damage your business causes to a third party.
Reinsurance
When an insurer transfers part of its own risk to another insurer — a background mechanism that keeps large claims payable.
Subrogation
Your insurer's right to recover what it paid you from whoever was actually responsible for the loss.
Third-party insurance
Cover for damage or injury you cause to someone else — not your own losses.
Underwriting
The insurer's process of assessing a risk and deciding the terms and price of cover.

Don't see the term you're looking for, or want it explained in the context of your own policy? Get in touch — a two-minute call usually clears it up faster than a search engine.

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