Common Insurance Terms Understanding insurance terminology is key to making informed decisions about your benefits. Here are some essential terms to help you navigate your coverage with confidence. Premium The amount paid for insurance coverage, usually on a monthly, quarterly, or annual basis. Claim A request made to the insurance company for payment or coverage for a loss or event. Deductible The amount the insured must pay out-of-pocket before insurance coverage kicks in. Coverage The protection provided by an insurance policy against financial loss or damage. Copayment The amount the insured must pay out-of-pocket before insurance coverage kicks in. Coverage The protection provided by an insurance policy against financial loss or damage.