Additional premium: An extra premium, besides the base premium, that is used to cover additional terms in a travel insurance policy. For example, if you plan to participate in an extreme sport, you may be required to pay an additional premium for that coverage.

Age limit: The age cut-off for basic cover. If you are older, you may not be able to get coverage or may be asked to provide additional medical information and pay an additional premium.

Annual multi-trip insurance: Special coverage for those who plan to make a series of trips within a 1 year period. This type of policy may have special maximum time restrictions per trip that one should check into before they choose this coverage. For those who do purchase this type of policy, it may save you some money in the long run.

Beneficiary: The person who will receive the funds from your insurance agreement if you are unable to collect due to death or severe injury. This is usually a spouse or close relative.

Contract: The legally binding agreement between you and your insurance company. The contract will spell out what is required of both parties, along with any exceptions.

Contingency: A condition that must be met before the insurance contract is legally binding or a situation that would make the terms of the contract null and void.

Deductible: Same as an excess.

Duty of Disclosure: A rule that both the insured and the insurance provider may not withhold important information from one another. If you do withhold this type of information, then you could face denial of any claim that you file. For example, if you know you have a particular medical condition, you are required to disclose that to your insurance provider before you sign a contract for your policy.

Excess: The amount that the insured agrees to pay before the insurance company will cover any costs asked for in a claim. For example, if your deductible is $1,000 and your hospital bill is $5,000, you will be required to pay $1,000 and your insurance company will pay the remaining $4,000.

Exclusion: Anything in your policy that is excluded from coverage. For example, complications from a pre-existing health condition may not be covered.

Indemnity: Payment received from an insurance claim. It should be great enough to restore you to the same financial and physical position that you were in before the injury occurred.

Insured: A person who is covered under an insurance policy.

Insurer: A company who provides insurance coverage.

Period of insurance: The time period that you are covered under your insurance policy. Only claims that fall within this period will be paid.

Personal liability: An injury to another person that is caused by you. Most travel insurance policies will pay personal injury claims.

Policy holder: Someone who takes out an insurance policy. This is the person who will collect any funds from a claim that is filed or who will name a beneficiary if they are unable to collect due to death or severe injury.

Premium: The amount that you must pay for your insurance coverage.

Third party: Someone making a claim to your insurance provider due to a personal liability against them.

Travel insurance: Insurance coverage specifically for those who plan to travel.