LifQ

Insurance & benefits glossary

Plain-language definitions for the terms you encounter in your employer benefits guides, insurance policies, and financial protection documents.

Employee Benefits

Open enrollment

The annual period during which employees can enroll in, change, or cancel employer-sponsored benefits.

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Healthcare Savings

HSA (Health Savings Account)

A tax-advantaged account that lets you save pre-tax money for qualified medical expenses, available with high-deductible health plans.

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Insurance

Coverage gap

A situation where a household has no insurance or benefit coverage for a specific risk, event, or period of time.

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Insurance

Deductible

The amount you pay out of pocket for covered services before your insurance begins to pay.

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Insurance

Premium

The recurring payment you make, monthly, quarterly, or annually, to maintain an insurance policy.

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Healthcare

Out-of-pocket maximum

The most you'll ever pay in a plan year for covered services, after which your insurance pays 100%.

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Healthcare

Copay

A fixed dollar amount you pay for a specific healthcare service, like $25 for a doctor visit, regardless of the total bill.

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Healthcare

Coinsurance

The percentage of costs you share with your insurer after meeting your deductible, for example, you pay 20%, your insurer pays 80%.

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Healthcare Savings

FSA (Flexible Spending Account)

A pre-tax account for healthcare expenses available with most employer-sponsored health plans, but funds typically must be used within the plan year.

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Healthcare

COBRA

A federal law that lets you keep your employer-sponsored health coverage for a limited time after leaving a job, at your own expense.

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Insurance

Umbrella insurance

Liability coverage that kicks in after your auto or home insurance limits are exhausted, typically providing $1M+ in additional protection.

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Insurance

Disability insurance

Insurance that replaces a portion of your income if you're unable to work due to illness or injury.

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Healthcare

HDHP (High-Deductible Health Plan)

A health insurance plan with lower premiums but a higher deductible than traditional plans, and the only plan type that makes you eligible for an HSA.

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Insurance

Beneficiary

The person (or entity) you designate to receive benefits from a life insurance policy, retirement account, or other financial instrument when you pass away.

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Employee Benefits

Qualifying life event

A major life change, such as marriage, having a baby, or losing job-based insurance, that allows you to change your health coverage outside of open enrollment.

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Healthcare

Special enrollment period

A window outside of open enrollment when you can sign up for or change health insurance, triggered by a qualifying life event.

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Healthcare

Network (in-network vs. out-of-network)

The group of doctors, hospitals, and providers that have a contract with your insurance company, in-network providers cost significantly less than out-of-network.

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Insurance

Rider

An optional add-on to an insurance policy that modifies or expands coverage, often for an additional premium.

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Healthcare

Coordination of benefits

The process that determines which insurance policy pays first when you're covered by more than one health plan, preventing you from receiving more than 100% of your actual costs.

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Insurance

Subrogation

The insurer's right to recover what it paid on your claim from whoever was actually responsible for the loss.

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Insurance

Exclusion

Something a policy states it will not pay for. Exclusions define the edges of coverage as precisely as the covered perils do.

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