Okuzeka
Insurance vocabulary · Claims

Payout

Meaning in insurance, with examples

/ˈpeɪaʊt/nounCore term

In insurance, payout means: The money an insurance company pays to a customer or beneficiary after a valid claim.

In Turkish: tazminat ödemesi, ödeme

How it is used

Common in news, customer conversations and reports. People receive a payout; payouts can be quick, delayed, full or partial. The phrasal verb is 'pay out': 'The insurer paid out 2 billion lira after the floods.'

Example sentences

  1. The family received the full payout three weeks after submitting the documents.

  2. Payouts for storm damage reached a record level this year.

Common collocations

  • receive a payout
  • full payout
  • insurance payout
  • delay a payout
  • claimA formal request to an insurance company to pay for a loss, damage or medical cost that the policy covers.
  • settlementThe final agreement on a claim and the payment that closes it, made after the insurer and the claimant accept the amount.
  • beneficiaryThe person or organisation named in a policy to receive the money, for example the family member who is paid when the insured person dies.
  • indemnityPayment that puts the insured back in the same financial position as before the loss, no better and no worse; also the principle behind such payment.

More terms: Claims

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This page explains English vocabulary for learners. It is not financial advice.