What does retention mean in insurance policy?

retention is the amount of money that insurers require customers to pay as a deposit at the time they purchase a policy, typically in the form of a premium. The purpose of the retention is to ensure that the insured party pays for the coverage in full.

What does retention mean in health insurance?

In the context of health insurance, the term “ retention refers to the percentage of premiums an insurer keeps from each client, on an ongoing basis. It’s a measure of how well the insurer’s clients are paying in to the company, and it’s usually expressed as a percentage.

What does retention mean in health insurance contract?

What is retention in health insurance? Retention is a term in health insurance contracts used to describe how long an insurer will continue to cover a policyholder. Most policies set a minimum time period of coverage before a policyholder's insurance becomes inactive or inactive.

What does retention mean in life insurance?

Retention is the amount of money an insurance company keeps in reserve to pay the remaining death benefits on a policy after a certain time period. Retention is based on the premium you pay each month and the term of the policy. For instance, if you pay $200 per month for five years on a $1 million whole life policy, your company will keep $600,000 in reserve after five years.

What does retention mean in health insurance plan?

Retention refers to the portion of your premium that an insurer keeps with you for a set period of time after you purchase a policy. This amount is essentially a portion of the initial cost that you paid to the insurer up front. This money acts as a financial cushion for your coverage during this time frame. The amount of money an insurer will keep with you will vary depending on the length of your policy term, the cost of your coverage, and the type of policy you have.