Generic Drug


Definition - What does Generic Drug mean?

A generic drug is a drug that is similar or identical to a brand-name product in terms of its:

  • Dosage
  • Strength
  • Administration method
  • Quality
  • Performance
  • Intended uses

Generic drugs are usually marketed under their chemical name, rather than a company brand.

Generic drugs are generally less expensive than their band-name counterparts, and many insurers will encourage their policyholders to purchase them as a way of reducing costs.

Insuranceopedia explains Generic Drug

Generic drugs offer greater access to healthcare for consumers. They are essentially copies of branded pharmaceutical products and contain the same active ingredients but are available at a lower cost.

While generic drugs are not linked to a particular company, they are still subject to government regulations in the countries where they are dispensed. They must be labeled with the name of the manufacturer, as well as a generic, non-proprietary name.

Typically, generic drugs must pass preliminary tests and get approval by the FDA before being made available to consumers.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.