YOU ASK:
What is the definition of Package Policy?
WE ANSWER:
A Package Policy refers to several risks being covered under one insurance policy. These coverages or distinct lines of insurance were sold separately in the past, but insurance companies now offer them in one package.
For instance, a homeowners insurance policy may cover several risks, such as fire, theft, and personal liability.
The advantage of having a package policy is that it is cheaper since as opposed to the costs linked to issuing two or more policies. The insured homeowner also will have to deal with only one policy, dealing with the insurance company based on that one policy, which will simplify matters both on the part of the insurance company and the policyowner.
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More insurance terms around package policy:
- Paid-Up Additional Insurance Option
- Paid-Up Policy
- Partial Disability
- Participating Policy
- Pay-At-The-Pump
- Payout Options
- Pension Benefit Guaranty Corporation
- Pension
- Per Capita Beneficiary Designation
- Per Stirpes Beneficiary Designation
- Over-The-Counter (OTC)
- Original Equipment Manufacturer Parts (OEM)
- Ordinary Life Insurance
- Ordinance or Law Coverage
- Options
- Operating Expenses
- Open Competition States
- Ocean Marine Insurance
- Occurrence Policy
- Occupation Disease