Insurance Policy

Every type of insurance comes with an insurance policy. An insurance policy can often be a confusing document that you don’t understand. The jumble of big words and numbers just don’t make sense to most of the American population. However, insurance policies can be very easy to understand if you know what you are looking for. Here are a few key things to look for in you insurance policy:

• Deductible- This refers to the amount of money that you will need to pay before any benefits from the insurance policy can be used.

• Co-insurance- This refers to the amount that needs to be paid by you to your doctor, dentist, ect., before the insurance company pays. This is often in addition to your deductible.

• Co payments- This is just another word for co-insurance.
• Exclusions- This is everything that the insurance policy will not cover. So in case any of these occur, you are on your own in paying the costs.

• Lifetime Maximum- This is the maximum amount of money that the insurance policy will pay for the entire life of the policy. Make sure this is a reasonable amount or you might end up paying a lot of out-of-pocket expenses!

• Pre-existing conditions- This is basically the illnesses or damages that you have before the insurance policy was issued. In insurance lingo this is the conditions that they policy will not cover.

• Waiting Period- This is the grace period between the time when you issue your insurance policy and the time that your coverage actually goes into effect.