Benefit
What Does Benefit Mean?
A benefit is a payout or other form of compensation or reimbursement that an insurance company owes to a policyholder when the policyholder experiences a covered loss. Whether a loss is covered depends on the terms of the specific policy purchased by the policyholder from the insurer.
Insuranceopedia Explains Benefit
Different types of insurance provide benefits for various types of losses. For example, health insurance offers benefits for medical treatment costs when an individual experiences a health issue. Life insurance provides benefits to the policyholder’s named beneficiaries in the event of the policyholder’s death. Business insurance offers benefits for losses related to a business. In general, the higher the premiums paid by a policyholder, the greater the benefits they can receive from the insurance policy.
