Chapter 23: Health, Disability, and Life Insurance

Health Insurance,

A form of protection that eases the financial burden people may experience as a result of illness or injury

Coinsurance,

The percentage of the medical expenses the policyholder must pay in addition to the deductible amount.

Stop-loss,

Is a provision that requires the policyholder to pay all costs up to a certain amount, after which the insurance company pays 100 percent of the remaining expenses covered in the policy.

Co-payment,

Is a flat flee that you pay every time you receive a covered service.

Blue Cross

An insurance company that provides hospital care benefits.

Blue Shield

An insurance company that provides benefits for surgical and medical services performed by physicians.

Managed Care

Prepaid health plans that provide comprehensive health care to their members.

Health Maintenance Organization (HMO)

A health insurance that plan directly employs or contracts with selected, or preapproved, physicians and other medical professionals to provide health care services in exchange for a fixed, prepaid monthly premium.

Preferred Provider Organization (PPO)

A group of doctors and hospitals that agree to provide specified medical services to members at prearranged fees.

Point-of-service (POS) Plan

A health insurance plan that uses network of participating physicians and medical professionals who have contracted to provide services for certain fees.

Medicare

A federally funded health insurance program available to people over 65 or with certain disabilities.

Medicaid

A mediacl assistance program offered to certain low-income individuals and families.

Disability Income Insurance

Provides regular cash income when an employee is unable to work due to pregnancey, a non-work related accident, or an illness.

Beneficiary

A person named to receive the benefits from an insurance policy.

Term Insurance

Insurance that provides protection against loss of life for only a specified term, or period of time.

Whole lIfe Insurance

A permanent policy for which you pay a specified premium each year for the rest of your life.

Cash Value

In a whole life insurance policy, the accumulated savings to which one is entitled when and if one cancels the policy

Endowment

Life insurance that provides coverage for a specific period of time and pays a sum of money to the policyholder if he or she is living at the end of the endowment period.

Lapse

A stop or interruption

Board

Daily meals, during a hospital stay.

Supplemental

Extra

Hospices

Facilities or organizations that provide care for the terminally ill

Valid

Good or effective

Suspend

To stop premiums if you become disabled

Hardship

Suffering

Provisions

conditions