When diving into the world of insurance, it can sometimes feel like you need a translator to understand all the industry jargon.

Let's break down some of the most common terms you’ll encounter, so you can feel confident and informed when discussing your policy.

1. Premium

This is the amount you pay for your insurance policy. Think of it as your membership fee to stay protected. Premiums can be paid monthly, quarterly, or annually, depending on your plan and preferences.

2. Deductible/Excess

The deductible or excess is the amount you pay out of pocket before your insurance kicks in. For example, if you have a $500 deductible and a $2,000 claim, you’ll pay the first $500, and your insurance will cover the remaining $1,500.

3. Policyholder

That’s you! The policyholder is the person who owns the insurance policy and is covered by it. Simple as that.

4. Claim

When something goes wrong—like an accident or damage to your property—you file an insurance claim to request payment from your insurance company. It’s essentially your way of saying, “Hi, I need help!”

5. Insurance Coverage

This refers to the specific protections and benefits provided by your insurance policy. Coverage can vary widely depending on the type of insurance (car, home, health, etc.) and the specifics of your policy.

6. Beneficiary

For life insurance policies, the beneficiary is the person (or people) who will receive the insurance payout if the policyholder passes away. It’s important to keep your beneficiaries up to date to ensure your loved ones are taken care of.

7. Exclusion

Exclusions are the things your insurance policy won’t cover. It’s crucial to read your insurance contract carefully to understand what’s included and what’s not, so you’re not caught off guard. For instance, you might discover that your insurance doesn't cover you if you drive with passengers while holding a restricted licence.

8. Underwriting

Underwriting is the process insurance companies use to evaluate the risk of insuring you. This involves assessing your application and determining your premium based on factors like your health, lifestyle, and driving record.

9. Extension or Exclusion

A Extension or Exclusion is an add-on to your insurance policy that provides additional coverage or benefits. For example, you might add a rider to your home insurance policy to cover expensive jewellery or art.

10. Grace Period

This is the extra period of time your insurance company gives you to pay your premium after the due date before they cancel your policy. It’s a little cushion to help you stay covered even if you’re a bit late.

11. Lapse

A lapse occurs when your insurance policy is terminated due to non-payment of premiums. If your policy lapses, you’re no longer covered, and you’ll need to go through the application process again to reinstate it. If your policy lapses due to non-payment, this becomes a material fact that must be disclosed to any future insurers.

12. Policy Term

This is the length of time your insurance policy is in effect. It could be six months, a year, or longer. At the end of the term, you’ll need to renew your policy to continue coverage.

13. Quote

A quote is an estimate of the cost of insurance. It’s based on the information you provide and helps you compare different policies and providers.

14. Endorsement

An endorsement is a change to your insurance policy that alters its terms or coverage. This could include adding or removing coverage, updating your personal information, or changing your deductible.

Understanding these terms can make a world of difference when you’re shopping for insurance or reviewing your current policy. Armed with this knowledge, you’ll be able to make more informed decisions and feel more confident discussing your coverage needs.

If you need help decoding any other insurance jargon you come across. Feel free to reach out to C&R for any questions or concerns you may have. 

Commercial - Horticulture & Viticulture - Rural - Personal - Life & Health - Income Protection