INSURANCE BASICS (GENERAL INSURANCE CONCEPTS)

1. What Is Insurance?

Insurance is a shared-cost system that protects individuals from high expenses by pooling risk.

2. Key General Insurance Terms

Premium — Monthly payment for the insurance plan
Deductible — Amount patient pays before insurance covers procedures
Coinsurance — Percentage the patient pays after deductible
Copay — Fixed amount patient pays at visit
Annual Maximum — Total amount insurance will pay per year
Eligibility — Whether a patient is active and covered
Effective Date — When coverage starts
Termination Date — When coverage ends
Subscriber — The primary policy holder
Dependent — Children or spouse covered under subscriber
Group Number — Employer’s insurance policy identifier

These concepts apply across all forms of insurance—medical, dental, vision, etc.