Common Insurance Terms Premium The amount paid for insurance coverage, usually on a monthly, quarterly, or annual basis. Coverage The protection provided by an insurance policy against financial loss or damage. Deductible The amount the insured must pay out-of-pocket before insurance coverage kicks in. Exclusion Specific situations, conditions, or items not covered by an insurance policy. Copayment A fixed amount paid by the insured for specific services, usually at the time of the service. Claim A request made to the insurance company for payment or coverage for a loss or event.