|
| Policyholder | The individual or entity that owns the insurance policy. | Jane Doe, who owns a health insurance policy. |
| Premium | The amount paid by the policyholder to the insurance company for coverage. | $200 monthly for health insurance. |
| Coverage | The protection provided by the insurance policy against specific risks. | Coverage for medical expenses, including doctor visits and hospital stays. |
| Claim | A request made by the policyholder to the insurance company for payment. | Jane files a claim for a $5,000 hospital bill. |
| Deductible | The amount the policyholder must pay out-of-pocket before the insurance pays. | $1,000 deductible for medical expenses. |
| Payout | The amount the insurance company pays to the policyholder for a covered claim. | Insurance pays $4,000 after Jane pays the $1,000 deductible. |
