Limit and exclusion
A limit sets how much a policy pays for a particular benefit or covered loss. An exclusion identifies something the policy does not cover. Ask for an example of each in the quote you are reviewing.
Beneficiary and effective date
A beneficiary is the person or entity designated to receive a benefit, such as a life insurance death benefit. An effective date is when coverage begins, subject to the policy’s requirements. Sending an inquiry or receiving a quote does not itself start coverage.
Try the explanation back in your own words
Before finishing a conversation, describe what you think the policy will pay, what you would pay, and when the coverage starts. Ask the agent to correct anything you missed.
- What do I pay to keep this coverage?
- What would I pay if I used it?
- What is covered, and what is excluded?
- What must happen before coverage takes effect?
Keep learning
Consumer resources used to check this guide:
General education only. This guide does not determine coverage or eligibility. Review the actual policy or plan and discuss your circumstances with a licensed professional.
