Premium: The amount you pay periodically (monthly, quarterly, or annually) for your insurance policy. Premiums are the cost of your coverage.

Deductible: The amount you must pay out-of-pocket before your insurance company starts covering the costs of a claim. For example, if you have a $500 deductible, you’ll need to pay the first $500 of covered expenses before your insurer steps in.

Policyholder: The person or entity who owns the insurance policy. The policyholder is responsible for paying premiums and making decisions about the policy.

Beneficiary: A person or organization designated to receive the benefits (such as a payout) from your insurance policy after a claim is made (typically in the case of life insurance).