Insurance, explained simply.

An actuary is a financial professional who uses mathematics, statistics, and risk modeling to calculate insurance premiums, policy reserves, and the financial impact of uncertainty on insurers.

An annuity is an insurance product that provides guaranteed income payments — either immediately or starting at a future date — often used for retirement income.

Auto insurance provides financial protection against losses from car accidents, theft, and liability. Most states require drivers to carry minimum liability coverage by law.

COBRA allows you to continue your employer-sponsored health insurance for a limited time after leaving a job. You keep the same coverage but pay the full premium — both your share and your employer's — plus a small administrative fee.

Coinsurance is the percentage of covered costs you share with your insurer after meeting your deductible. A common split is 80/20, where the insurer pays 80% and you pay 20%.

A copay is a fixed dollar amount you pay for a specific healthcare service, like a doctor visit or prescription. Copays are due at the time of service, separate from your deductible.

Critical illness insurance pays a lump-sum cash benefit if you are diagnosed with a covered serious illness like cancer, heart attack, or stroke.

Dental insurance helps cover the cost of routine dental care, fillings, and major procedures like crowns or root canals. Most plans use a 100/80/50 structure based on the type of care received.

Disability insurance replaces a portion of your income if you become unable to work due to illness or injury. It is one of the most overlooked but important forms of financial protection.

An elimination period is the number of days you must wait after becoming disabled or needing care before your insurance benefits begin paying. It functions like a time-based deductible.

A Flexible Spending Account (FSA) is an employer-sponsored account that lets you set aside pre-tax dollars for qualified medical or dependent care expenses. Unlike an HSA, most FSA funds must be used by year-end.

Flood insurance covers damage from rising water — flooding caused by storms, overflowing rivers, or storm surges. Standard homeowners insurance does not cover floods, making a separate flood policy essential in at-risk areas.

Group insurance is coverage provided through an employer, association, or organization that covers multiple people under a single master policy, typically at lower rates.

Guaranteed issue means an insurance company must offer you coverage regardless of health status, age, or pre-existing conditions — no medical questions or exams required.

The Health Insurance Marketplace, also called the Exchange, is where individuals and families can shop for ACA-compliant health insurance plans and apply for premium subsidies. Open enrollment runs annually each fall.

A Health Savings Account (HSA) is a tax-advantaged savings account paired with a high-deductible health plan that lets you save pre-tax dollars for qualified medical expenses. Unused funds roll over indefinitely.

HMOs and PPOs are two common types of health insurance plans that differ in network flexibility and cost structure. HMOs are typically cheaper but more restrictive, while PPOs offer more provider choice at a higher price.

Homeowners insurance protects your home and belongings against damage, theft, and liability. Most mortgage lenders require it as a condition of financing.

An insurance agent represents one or more insurance companies, while a broker represents you — the buyer — and shops across multiple carriers to find a suitable policy.

An insurance claim is a formal request to your insurer for payment or coverage after a covered loss or event occurs. The insurer reviews the claim and pays out according to your policy terms.

A deductible is the amount you pay out of pocket before your insurance starts covering costs. Choosing a higher deductible typically lowers your monthly premium.

A deductible is the annual amount you pay before insurance kicks in, while a copay is a fixed fee you pay at each visit. Understanding the difference helps you choose the right plan.

An insurance premium is the regular payment you make to keep your insurance policy active. It is typically billed monthly, quarterly, or annually.

An insurance rider is an add-on provision that customizes or enhances your base insurance policy. Riders can expand coverage, add new benefits, or adjust policy terms — usually for an additional premium.

Liability insurance pays for damages and legal costs when you are found legally responsible for injuring someone or damaging their property. It is a core component of most personal and business insurance policies.

Life insurance pays a death benefit to your beneficiaries when you die, providing financial protection for those who depend on your income. It comes in two main forms: term and permanent.

Long-term care insurance covers the cost of extended personal care services — in a nursing home, assisted living facility, or at home — when you can no longer perform basic daily activities independently.

Open enrollment is the annual period when you can sign up for, change, or cancel your insurance coverage. Missing this window typically means waiting until the next year unless you experience a qualifying life event.

The out-of-pocket maximum is the most you will pay for covered healthcare in a plan year before your insurance covers 100% of costs. It includes deductibles, copays, and coinsurance.

Pet insurance helps cover veterinary costs for your dog, cat, or other pet. It can protect you from large, unexpected vet bills for accidents, illnesses, and sometimes routine care.

A pre-existing condition is a health problem you had before your insurance coverage began. Under the ACA, health insurers cannot deny coverage or charge higher premiums based on pre-existing conditions.

Renters insurance covers your personal belongings, liability, and temporary living expenses if your rental unit is damaged or burglarized. It does not cover the building itself — that's the landlord's responsibility.

Subrogation is the process by which your insurance company recovers costs from the at-fault party after paying your claim. It can result in you getting your deductible refunded.

Supplemental insurance provides extra coverage beyond your primary plan, helping pay for costs that standard health, disability, or life insurance does not fully cover.

Term life insurance provides coverage for a specific period — typically 10 to 30 years — and pays a death benefit only if you die during that term. It is the most affordable form of life insurance.

Umbrella insurance provides extra liability coverage beyond the limits of your home, auto, and other policies. It kicks in when those policies are exhausted and protects your assets from large judgments.

Underwriting is the process insurers use to evaluate risk and determine whether to offer coverage, and at what price. It is how your premium and policy terms are established.

Vision insurance helps cover the cost of eye exams, prescription eyeglasses, and contact lenses. It is usually a separate policy from health insurance and involves low premiums and set benefit amounts.

A waiting period is the time between when an insurance policy starts and when coverage for certain benefits actually begins. It prevents immediate claims on new policies.

Whole life insurance is permanent life insurance that covers you for your entire lifetime and builds a guaranteed cash value over time. Premiums are higher than term but remain fixed for life.