INSURECO EDITORIAL · UPDATED APRIL 30, 2026

Insurance Glossary

Plain-English definitions of the Medicare, ACA health, and life insurance terms most consumers ask about. Each definition is reviewed by a licensed insurance professional. Cross-linked from across our editorial content so you can read in context.

Browse by category: Medicare Health Insurance Life Insurance All terms
Health

ACA Marketplace

Healthcare.gov and state exchanges where you buy ACA-compliant individual health insurance.

Life

Accelerated Underwriting (AU)

Algorithmic life insurance underwriting with no medical exam — same rate classes as fully-underwritten.

Medicare

Anniversary Rule (Medigap)

Missouri's annual guaranteed-issue Medigap switching window tied to policy anniversary.

Medicare

Annual Enrollment Period (AEP)

October 15 – December 7 each year — change Medicare Advantage and Part D plans for next year.

Medicare

Birthday Rule (Medigap)

Annual guaranteed-issue Medigap switching window in 10 states — change to equal-or-lesser plan without underwriting.

Life

Cash Value (Permanent Life)

Savings component of permanent life insurance that grows tax-deferred.

Health

Children's Health Insurance Program (CHIP)

Federal-state program for children whose families exceed Medicaid income limits but can't afford private coverage.

Health

COBRA

Federal law allowing 18-36 month continuation of employer health coverage after a qualifying event — at full cost.

Health

Coinsurance

Percentage of cost you share with insurance after meeting your deductible.

Life

Conversion Privilege (Term Life)

Term life feature letting you convert to permanent insurance without new medical underwriting.

Health

Copay

Fixed dollar amount you pay for a covered service ($25 for office visit, $10 for generic Rx, etc.).

Health

Cost-Sharing Reduction (CSR)

Silver-plan-only ACA subsidy that lowers deductibles, copays, and out-of-pocket max for households under 250% FPL.

Medicare

Creditable Coverage

Drug coverage that's at least as good as standard Part D — keeps you penalty-free if you delay Part D.

Life

Decreasing Term Life

Term life with face amount that drops over time — generally inferior to level term.

Health

Deductible

Amount you pay out-of-pocket before insurance starts paying.

Life

DIME Method

Formula for calculating life insurance need: Debt + Income (10x) + Mortgage + Education.

Life

Dividend (Mutual Whole Life)

Annual return of premium from a mutual life insurer — based on actual mortality, expense, and investment experience.

Health

Essential Health Benefits (EHB)

10 categories of services every ACA-compliant plan must cover.

Medicare

Extra Help (Low-Income Subsidy)

Federal program that pays Part D premiums and copays for low-income beneficiaries.

Health

Federal Poverty Level (FPL)

Annual income benchmark used to determine eligibility for ACA subsidies, Medicaid, and other programs.

Life

Final Expense Insurance

Small whole life policy ($5K-$50K) sized to cover funeral and burial costs.

Medicare

Guaranteed Issue (Medigap)

Federal protection requiring carriers to sell you a Medigap plan regardless of health.

Life

Guaranteed-Issue Life Insurance

Life insurance with no health questions — small face amounts, graded death benefit, highest cost per dollar of coverage.

Health

High-Deductible Health Plan (HDHP)

ACA-compliant plan that meets IRS deductible/OOP-max thresholds and qualifies for HSA contributions.

Medicare

High-Deductible Plan G

Plan G coverage after a federal annual deductible (~$2,870 in 2026); cheapest Medigap monthly premium.

Health

HMO (Health Maintenance Organization)

Health plan with closed network and primary care gatekeeper for specialist referrals.

Health

Health Savings Account (HSA)

Triple-tax-advantaged savings account paired with HDHP — for medical expenses now or later.

Health

ICHRA (Individual Coverage HRA)

Employer reimburses employees tax-free for individual ACA marketplace coverage instead of offering a group plan.

Life

Indexed Universal Life (IUL)

Permanent life insurance with cash value tied to a stock index, with caps and floors — often oversold.

Medicare

Initial Enrollment Period (IEP)

7-month window around your 65th birthday to enroll in Medicare without penalty.

Medicare

IRMAA

Income-Related Monthly Adjustment Amount — surcharge on Part B and Part D premiums for higher-income enrollees.

Medicare

Form SSA-44 (IRMAA Appeal)

Social Security form to request a reduction of IRMAA after a life-changing event.

Life

Level Term Life

Term life with premium that stays level for the full term length.

Health

Medicaid

Federal-state low-income health coverage — income limits for adults vary by state expansion status.

Medicare

Medical Underwriting (Medigap)

Carrier review of your health to decide whether to issue Medigap and at what rate — applies outside guaranteed-issue periods.

Medicare

Medicare Advantage

Part C — private HMO/PPO plans that replace Original Medicare, often with $0 premium.

Medicare

Medicare Advantage Open Enrollment (MA-OEP)

Jan 1 – Mar 31 — current MA enrollees can change MA plans or drop MA back to Original Medicare.

Medicare

Medicare Savings Program (MSP)

State Medicaid program that pays Part B premiums for low-income Medicare enrollees.

Medicare

Medigap

Private insurance that pays the deductibles, copays, and coinsurance Original Medicare leaves you with.

Medicare

Medigap Open Enrollment Period

One-time 6-month window when you can buy any Medigap plan with no medical underwriting.

Health

Metal Tiers (ACA)

ACA plan classifications by cost-sharing — Bronze, Silver, Gold, Platinum.

Health

Modified Adjusted Gross Income (MAGI)

Income measure used for ACA subsidies, Medicaid eligibility, and Medicare IRMAA.

Medicare

Out-of-Pocket Maximum (Medicare Advantage MOOP)

Annual cap on what you pay for Medicare-covered services in a Medicare Advantage plan ($9,350 in-network for 2026).

Life

Mortgage Protection Insurance (MPI)

Decreasing term life sold by mortgage lenders — usually overpriced vs. equivalent level term.

Health

Open Enrollment (ACA)

Annual window to enroll in or change ACA marketplace plans — Nov 1 to Jan 15 federally.

Life

Paid-Up Additions (PUA)

Whole life rider that uses dividends to buy small bits of additional fully paid-up insurance.

Medicare

Medicare Part A

Hospital insurance — premium-free for most after 10 years of Medicare-taxed work.

Medicare

Medicare Part B

Medical insurance for outpatient/doctor services — standard premium $185/mo in 2026.

Medicare

Part B Excess Charges

Up to 15% above Medicare-approved amounts — only allowed in some states; covered by Plan G but not Plan N.

Medicare

Medicare Part D

Standalone prescription drug coverage; required to avoid permanent late enrollment penalty.

Medicare

Medigap Plan F

Most comprehensive Medigap plan, but closed to those new to Medicare after 2020-01-01.

Medicare

Medigap Plan G

The most comprehensive Medigap plan available to those new to Medicare today.

Medicare

Medigap Plan N

Lower-premium Medigap plan with small office and ER copays.

Health

PPO (Preferred Provider Organization)

Health plan with broader network and out-of-network coverage at higher cost-sharing.

Health

Premium Tax Credit (APTC)

Federal subsidy that lowers your monthly ACA marketplace premium based on income.

Health

Self-Employed Health Insurance Deduction

Above-the-line deduction for self-employed health insurance premiums — Form 1040 Schedule 1.

Health

Short-Term Medical Insurance

Non-ACA-compliant temporary health coverage — useful as a stopgap, problematic as a permanent solution.

Life

Simplified-Issue Life Insurance

Life insurance with no medical exam but extensive health questions — quick issue, smaller face amounts.

Medicare

Special Needs Plan (SNP)

Medicare Advantage plans tailored to chronic conditions, dual eligibility, or institutional residence.

Health

Special Enrollment Period (ACA SEP)

60-day window to enroll in or change ACA marketplace coverage outside Open Enrollment, triggered by a Qualifying Life Event.

Life

Term Life Insurance

Pure death benefit life insurance for a set period (10/20/30 years), no cash value.

Medicare

Trial Right

12-month guaranteed-issue Medigap window if you joined Medicare Advantage at first eligibility.

Life

Whole Life Insurance

Permanent life insurance with lifetime coverage and slow-growing cash value.