Insurance

The person or entity that owns an insurance policy and holds the rights and responsibilities under it. They’re responsible for paying premiums to keep coverage active and can make changes such as updating beneficiaries or adjusting the policy. The policyholder isn’t always the insured person, since someone can own a policy that covers another individual.

The process by which your insurance company, after paying your claim, pursues the at-fault party or their insurer to recover the money it paid out. It lets your insurer step into your shoes to seek reimbursement, which helps keep premiums down and can result in your deductible being refunded if the recovery is successful. A common example is auto insurance, where your insurer pays your repairs after an accident caused by another driver, then recoups the cost from that driver’s insurer.

A one-page document that serves as proof an individual or business holds an active insurance policy, summarizing key details like the coverage types, policy limits, effective dates, and insurer. It’s commonly requested by clients, landlords, or partners before signing a contract to verify that coverage exists. Importantly, it’s only a summary for verification and doesn’t itself grant coverage or change the terms of the actual policy.

A type of permanent life insurance that combines lifelong coverage with a cash value component whose growth is tied to a market index, such as the S&P 500, rather than invested directly in it. Gains are subject to a cap that limits your upside and a floor (usually 0%) that protects against market losses. It offers flexible premiums and a death benefit, but fees and caps can eat into returns, making it more complex than term life insurance.

Specialized coverage for people or businesses that insurers consider more likely to file a claim, and who therefore pay higher premiums. Individuals may fall into this category due to factors like a poor driving record, past claims, a dangerous occupation, or serious health conditions. Because standard insurers may decline them, this coverage is often provided by companies that specialize in higher-risk applicants.