Is Your Policy Hard To Understand?
Trust us, you’re not the first person to wonder why your policy looks like it’s written in hieroglyphics. We’ll let you in on a secret: Insurance policies are written for “legal-minded” people to interpret (iamagazine.com). The word “policy” really plays down the complexity of these documents, in reality a policy is a legal contract.
Unless you are comfortable interpreting highly specialized language, you probably won’t be able to fully comprehend the intricacies of your policy on your own. And that’s ok! Your insurance agent should be able to break it down and explain your coverage in a way that is comfortable and understandable to you. Because we are independent agents, we are able to give you our honest opinions about each policy because we can offer many comparable options. Your agent should lay out all the facts for you and help you decide which coverage suits your needs best. You shouldn’t have the guess what you’re covered for and should not be taken by surprise if something happens.
That said, there are some basic insurance terms you should be familiar with:
· Premium: Your premium is the amount you pay every month for your coverage. You may not get a physical bill for every policy, however. If you are enrolled in your employer’s healthcare plan for example, your premium is deducted pre-tax from your paycheck.
· Deductible: This is the amount your must pay before your insurance kicks in. If you have a copay or coinsurance percentage, those typically do not count toward your deductible.
· Copay: This is the amount you pay for office visits and/or prescriptions. Be advised, you are typically expected to pay these at the time you receive the service like when you go to pick up a prescription.
· Covered Person: This identifies who is covered under your insurance plan. The policy owner (you) and any dependents like your spouse or children should be included if you are all on the same plan (insure.com)
So the bottom line is that your insurance policy shouldn’t be difficult to understand because that’s what your agent is for! It is their responsibility to answer any questions you have and help you find the right policy with the best coverage for you.
If you’re skeptical about your current policy, it might be time to get a second opinion. Contact us and we’ll be more than happy to walk you through your options!