Insurance · Module 3 of 4
What a policy is for
Liability cover, life insurance for the people who rely on you, and the fine print about what a policy won’t pay for.
Key terms in What a policy is for
- Liability insurance
Liability insurance is coverage that protects the policyholder against legal responsibility for injury to other people or damage to their property. It typically pays for the other party's covered losses and for legal defense, up to a stated limit, rather than for the policyholder's own belongings. Common forms include the liability portions of auto and homeowners policies, and separate business and professional liability policies.
Source: National Association of Insurance Commissioners, Glossary of Insurance Terms
- Term life insurance
Term life insurance is a type of life insurance that pays a death benefit to the named beneficiaries if the insured person dies during a set period, called the term. Terms are commonly written for periods such as 10 or 20 years. If the person outlives the term, coverage ends and no benefit is paid. It generally has no savings or cash value component.
Source: National Association of Insurance Commissioners, Consumer Insight: Life Insurance Roadmap
- Excluded services
Excluded services are health care services that a health insurance plan does not pay for or cover. The exact list depends on the plan and the state, and it is spelled out in the plan documents. A person who receives an excluded service generally has to pay for it directly.
Every term on Lever is in the money glossary.
About this module
What a policy is for is part of Insurance, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
More in Insurance
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1
When something goes wrong
How insurance works: premiums, deductibles, filing a claim, and the gaps public coverage leaves.
9 lessons -
2
Covering yourself before you can afford to
Protecting yourself before you can afford a policy: the risks that matter most and what to build toward first.
5 lessons -
4
What you still pay
Copays, coinsurance and your yearly maximum, and why the cheapest monthly price isn’t always the cheapest year.
6 lessons
Try this module
It’s part of Insurance. Lever will bring it to you when you’re ready, or you can go straight there.