Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance.

Amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance.

• A. Coinsurance
• B. Premium
• C. Copayment
• D. Deductible

Answer: (B)

The main idea is understanding what keeps an insurance policy active: the amount you pay regularly is called the premium. This is the price of having coverage, and you pay it on a schedule that works for you—monthly, quarterly, semiannually, or annually—whether or not you use any services. This differs from other terms: coinsurance is the share of costs you pay after meeting your deductible, a copayment is a fixed fee you pay for a service at the time you receive it, and a deductible is the amount you must pay out of pocket before the insurer starts paying. Knowing this helps you budget and decide on a plan, since the premium is what maintains your coverage.

The main idea is understanding what keeps an insurance policy active: the amount you pay regularly is called the premium. This is the price of having coverage, and you pay it on a schedule that works for you—monthly, quarterly, semiannually, or annually—whether or not you use any services. This differs from other terms: coinsurance is the share of costs you pay after meeting your deductible, a copayment is a fixed fee you pay for a service at the time you receive it, and a deductible is the amount you must pay out of pocket before the insurer starts paying. Knowing this helps you budget and decide on a plan, since the premium is what maintains your coverage.