Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to assist understanding the language commonly used by insurance companies. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.
If you plan to start a new policy or renew your current policy with a carrier or agency, it is important to review and understand the policy differences behind individual quotes from multiple carriers. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim for loss or damages in the future.
401(K) Plan
A salary reduction plan that allows employees to contribute a portion of their salaries on a tax-deferred basis. When this type of employee benefit is available to you, you should give it serious consideration. Many employers match contributions that you make to a 401(k) plan. See also Defined Contribution Plan.
403(B) Plan
Also referred to as a Tax -Sheltered Annuity Plan, and similar to the 401(k) Plan, the 403(b) is a retirement plan available to employees of certain tax-exempt organizations (i.e. public schools).
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