Numbers - GLOSSARY Insurance Terms: Numbers 401(k) Plan A retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out. Taxes are paid upon withdrawal, typically after retirement. 403(b) Plan Similar to a 401(k) plan, this is a retirement savings plan designed for employees of public schools, certain non-profits, and tax-exempt organizations. Contributions are made pre-tax, and withdrawals are taxed. 529 Plan A tax-advantaged savings plan designed to encourage saving for future education costs. Named after Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions. 80/20 Rule (Pareto Principle) In insurance, this rule often refers to the concept that 80% of claims costs come from 20% of policyholders. It is used to identify and manage the most significant risks. 100-Year Flood A term used in flood insurance to describe a flood event that has a 1% chance of occurring in any given year. Contrary to its name, it can happen more than once in a century. 24-Hour Coverage A type of insurance policy that provides coverage for both occupational and non-occupational injuries and illnesses, ensuring protection around the clock.