Terms
A thing providing protection against a possible eventuality; a way to address risk.
What is insurance?
An amount paid for the insurance coverage and usually paid per pay period.
What are premiums?
This is a health plan with a higher deductible than a traditional insurance plan and is an acronym for High Deductible Health Plan.
What is an HDHP?
This type of account is used for medical, dental, and vision expenses and the amount will roll over from year to year.
What is an HSA?
A life insurance plan that remains in force for the insured's lifetime and may accumulate cash value.
What is whole life insurance?
This is the type of insurance we work with for Businessolver clients.
What is group insurance?
An amount the individual owes for health care services before the plan begins to pay.
What is a deductible?
This is a health plan that has higher monthly premiums in exchange for the flexibility to use providers both in and out of network without a referral, an acronym for Preferred Provider Organization.
What is a PPO?
This type of account is used for medical, dental, and vision expenses and the amount will NOT roll over from year to year.
What is an FSA?
This is a plan that pays a portion of your income to you if you are disabled for a short time.
What is short term disability?
A timeframe where new employees must wait to begin coverage after they become employed.
What is a probationary period?
A fixed amount paid by the individual for a covered health care service.
What is a co-payment?
This is a kind of health insurance that has a list of providers, such as doctors, medical groups, hospitals, and labs that are acceptable, an acronym for Health Maintenance Organization.
What is an HMO?
The funds in this type of account can only be used for day care expenses.
What is a DCFSA?
This is a plan that pays a portion of your income to you after short term disability has expired and can last until retirement.
What is long term disability?
A specific period of time where an employee can enroll in an employer-sponsored benefit.
What is an enrollment period or open/annual enrollment?
An individual's share of the costs of a covered health care service calculated as a percentage.
What is co-insurance?
A group life insurance plan that will pay out if death occurs during the term and does not accumulate other value.
What is term life insurance?
This type of account can only be used for dental and vision expenses and usually paired with an HSA.
What is an LPFSA?
This type of spending account can only be used for transportation expenses.
What is a transit/parking account?
This is proof that the individual seeking voluntary benefit coverage is eligible.
What is evidence of insurability?
The most an individual will pay during a policy period before the plan will pay for 100% of covered health care costs.
What is out of pocket maximum?
A type of insurance paired with term life to be paid out if the insured is involved in an accident.
What is Accidental Death and Dismemberment insurance?
This type of account is only funded by the employer, it's front-loaded, and has the same eligible expenses as an FSA.
What is an HRA?
This is an imbalance of information between an individual and an insurance company.
What is adverse selection?