7 Insurance Jargon Words You Need to Know
May 11, 2016
As you begin your career as a Farm Bureau agent, you’ll find that the insurance industry has its own vocabulary. Insurance terms have specific meanings and sometimes it can get lost in translation. Thankfully Farm Bureau equips you with the knowledge and know-how to become an insurance professional so you can help protect what matters most to your client/members. Brush up on the 7 common insurance jargon words you need to know to help those in your community.
Definition: a contract providing income for a specified period of time, or duration of life for a person or persons.
As a Farm Bureau insurance agent, you can help fill the gaps of your client/members retirement income with an annuity. Annuities come in three forms – fixed annuities, variable annuities and indexed annuities – and are designed to pay a steady stream of income into the retirement years.
Definition: an investment program funded by shareholders that trades in diversified holdings and is professionally managed.
When your client/member invests in a mutual fund, they’re pooling their money with other investors to buy stocks, bonds, short-term securities or a combination of these investments. Mutual funds are affordable and can be a low-risk way to steadily build wealth over time.
Definition: portion of the insured loss paid by the policyholder
The deductible is the amount of money that your client/member must pay out of pocket before Farm Bureau will pay expenses. From car insurance to homeowners insurance, there will be a deductible on the Farm Bureau insurance policies you sell.
Replacement Cost Coverage
Definition: the cost of replacing property without deducting depreciation due to normal wear and tear.
As a Farm Bureau agent, your client/member may have Replacement Cost Coverage. This optional coverage can replace your client/members damaged vehicle with a new vehicle of similar model if the damaged vehicle is less than four* years old. * Age of the car varies by state.
Umbrella Insurance Policy
Definition: a type of insurance that provides liability coverage over and above your automobile or homeowner’s policy.
When it comes to proper insurance coverage, your client/members may look into umbrella liability insurance. This optional coverage provides an additional layer of protection where vehicle and homeowner’s insurance liability limits stop. In many cases, umbrella insurance is written for amounts of $1 million or more, but your client/members generally find the coverage is reasonably priced for the amount of added peace of mind that it provides.
Definition: insurance that protects against property losses to your business, home or car and/or against legal liability that may result from injury or damage to the property of others.
Throughout your career, you’ll spend your time helping client/members protecting what matters most to them possibly with property-casualty insurance. Common types of property-casualty insurance includes homeowner’s and auto insurance.
Definition: the standard length of time an insurance policy is in effect without the insurance company adjusting your rate.
The renewal date of your client/members’ insurance policies is based upon the date the policies took effect (often renewed annually or semi-annually). When the renewal is up, make sure to talk to your client/members and conduct a SuperCheck to make any necessary changes in their coverage.
For more definitions, read the full glossary of insurance terms from the National Association of Insurance Commissioners.
Become a Farm Bureau Insurance Expert
As you navigate the rewarding world of insurance, refer back to this list of definitions. For more helpful tips as you start your journey as Farm Bureau agent, sign up for our newsletter!