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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 or not a loss is covered is determined by the terms of the specific policy that the policyholder bought from the insurer.


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Insuranceopedia Explains Benefit

Different types of insurance provide benefits for different types of losses. For example, health insurance provides benefits for losses related to medical treatment when one experiences a health problem. Life insurance provides benefits for the death of the policyholder to his or her named beneficiaries. Business insurance provides benefits for losses related to a business. In general, the higher a policyholder pays in premiums, the more benefits he or she can get from the insurance policy.

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