Insurance Terminology – Premium, Deductible, Coverage Fond du Lac | Waupun | Ripon

Better understand of the following three insurance terms will help you shop for a policy:

Premium – What you pay for insurance coverage. You give your info to the insurance company, they calculate a premium you need to pay for their protection, then you decide if you are willing to pay that premium. This is a pre-paid expense, just like your monthly rent.

Deductible – In event of loss, you first pay the deductible and the insurance company pays the remainder. The company will give you many deductible options at many price points. A lower deductible is beneficial to the policyholder, so it costs more. A higher deductible is beneficial to the company, so it costs less.

Coverage – Defined by your contract, these are the ways and amounts the insurance company will financially protect you in the event of loss. There are many types of losses, some small and some catastrophic. In any case, the company will investigate into the loss and provide services as outlined in the contract.

**Contact a Behnke Insurance Agent for details**