Basics definitions: Premium, deductibles, coverages
Have you ever heard someone mentioning their premium and had no idea what they were talking about? Maybe you've wondered how your deductible works, or if you're even covered for a certain situation.
In this video, we'll define some common insurance terms: premium, deductible, and coverages. We'll also give a few examples so it's easier to understand.
When it comes to insurance, there are a few key terms you should be familiar with. Let's start with premiums.
A premium is an amount you pay to your insurance company in order to have coverage.
Deductibles are another important concept to understand. A deductible is an amount you must pay out of pocket before your insurance company will start covering expenses. For example, if your deductible is $1,000 and you have a medical bill for $2,000, you would pay the first $1,000 and your insurance company would cover the remaining $1,000.
Finally, it's important to know about coverages. Coverage is simply what your insurance policy covers. There are many different types of coverages, so it's important to read through your policy carefully to make sure you understand what is and isn't covered.
Hopefully this gives you a basic understanding of some key insurance terms. For more information, be sure to subscribe and to check our other insurance videos.
