Glossary of Insurance Terms

Fair Premium

The premium level that is just high enough to cover an insurer's expected costs and give insurance company owners a just return on their invested capital

Favorable Tax Treatment

Benefits are received free from tax. Also, your premium and long-term care expenses may be deductible from your Federal Income Taxes, within reason. Please contact your tax advisor for more information.

Financial Counseling Programs

Help seniors with managing their finances, bills, and completing Medicaid, Medicare or insurance forms

Financial Soundness

Related to stability, it is important to compare the financial ratings and asset of insurance carriers

Foreign Insurer

When the insurer is not located in the state in which they are incorporated

Free-Look Period

Once you buy a policy, most states allow you up 30 days to return your policy. Make sure to get written proof of this option when you receive your policy