12 | Insurance Options

Today you will learn 5 new English words related to "Insurance Options"

Author

SEWT Team
May 18, 2025

Understanding “insurance options” is beneficial for you as an ESL learner, as it helps you navigate the complexities of life in a new country. Insurance covers a wide range of risks, including health, auto, home, and renters’ insurance. Learning about different types of insurance, coverage options, and the importance of having adequate protection can provide you with peace of mind and financial security. By understanding today’s vocabulary, you will be able to make informed decisions that protect not only yourself, but also your family from unexpected events. Let’s jump right in!

5 TERMS

  1. Policyholder (Noun): The person or entity that owns the insurance policy and is entitled to the benefits.

  2. Claim (Noun / Verb): A request made to an insurance company for payment or compensation after a loss, injury, or damage.

  3. Exclusion (Noun): Specific conditions or circumstances not covered by an insurance policy.

  4. Beneficiary (Noun): A person or entity designated to receive the benefits of an insurance policy, particularly in life insurance.

  5. Underwriting (Noun): The process through which an insurer assesses the risk and decides the terms, premiums, and coverage of a policy.

EXAMPLE SENTENCES

  1. Policyholder

    • As the policyholder, you are responsible for paying the premiums on time.

    • The policyholder must notify the insurer of any significant changes to the property.

    • The policyholder receives the benefits if a claim is made under the insurance policy.

  2. Claim

    • She filed a claim for the damage caused by the storm to her property.

    • After the accident, he quickly submitted a claim to the insurance company.

    • The insurance company denied the claim because the damage wasn’t covered under the policy.

  3. Exclusion 

    • The policy has several exclusions, including damage caused by flooding.

    • Be sure to read the fine print to understand the exclusions of your insurance coverage.

    • Certain high-risk activities, like skydiving, are often listed as exclusions in many health insurance plans.

  4. Beneficiary

    • He named his daughter as the beneficiary of his life insurance policy.

    • The beneficiary of the health insurance plan can access medical services on behalf of the insured.

    • If the policyholder passes away, the beneficiary will receive the insurance payout.

  5. Underwriting

    • The underwriting process involves reviewing your medical history and lifestyle to determine your insurance rates.

    • If you have a pre-existing condition, your insurance policy may be subject to more extensive underwriting.

    • The insurer’s underwriting team will evaluate the risk before approving your application for coverage

EXAMPLE PARAGRAPH

Insurance options can be complex but understanding them is crucial for financial security. Underwriting processes assess risk and determine eligibility for coverage. Policyholders choose from various options, considering factors like coverage limits, deductibles, and exclusions. In the event of a covered loss, the policyholder files a claim with the insurance company. The designated beneficiary receives the insurance proceeds according to the terms of the policy. By carefully reviewing policy details and understanding these key terms, individuals can choose the insurance options that best suit their specific needs and circumstances.

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