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Terminology

A Quick guide to insurance terminology


B
Beneficiary

This is a person or entity that you want to receive the benefit from your insurance policy. This can be yourself, your estate, or another person.




Betterment

This describes a situation where you (the insured) end up better off than you were before the loss or damage occurred as a result of your claim being paid. Usually, insurance policies do not allow for betterment.

For example, if repairs or replacement must be done in such a way that the insured item will have a higher value than it had before the loss; the insurer may ask you to pay the difference as you are now in a "better" position.