Glossary of Insurance Terms

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Automatic premium loan

A provision in a life insurance policy that any premium not paid by the end of the grace period (usually 31 days) is automatically paid by a policy loan if there is sufficient cash value.

BadgerCare

Wisconsin’s program to provide health care coverage for uninsured families.

Bed reservation

This benefit is payable if you are receiving nursing home care and need to spend time in a hospital. The company will cover any charge made by the nursing home for reserving your bed during your hospitalization.

Beneficiary

The person or financial instrument (for example, a trust fund), named in the policy as the recipient of insurance money in the event of the insured's death.

Benefit appeal

The opportunity for the Medicare beneficiary to submit a written request for review by the insurer of the denial of a claim for Wisconsin mandated benefits under the Medicare supplement policy.

Benefit determination

A decision from the Medicare managed care plan to offer coverage under the provisions of the policy. The benefit could require a deductible or copayment. The benefit could also be limited to a certain amount by the plan.