What is the term for the periodic payment that keeps an insurance policy active?

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Multiple Choice

What is the term for the periodic payment that keeps an insurance policy active?

Premiums are the periodic payments that keep an insurance policy active. This regular payment funds the insurer so the coverage remains in force, and it’s typically due on a set schedule such as monthly, quarterly, or annually. It’s separate from what you pay out-of-pocket when you receive care—like a deductible (the amount you pay before coverage kicks in) or a co-payment (a fixed amount due at the time of service). A claim, on the other hand, is a request to the insurer to pay for services already received. If premiums aren’t paid, the policy can lapse, ending coverage until payments are brought current. The term for these ongoing payments is premiums, referring to the series of payments over time.

Premiums are the periodic payments that keep an insurance policy active. This regular payment funds the insurer so the coverage remains in force, and it’s typically due on a set schedule such as monthly, quarterly, or annually. It’s separate from what you pay out-of-pocket when you receive care—like a deductible (the amount you pay before coverage kicks in) or a co-payment (a fixed amount due at the time of service). A claim, on the other hand, is a request to the insurer to pay for services already received. If premiums aren’t paid, the policy can lapse, ending coverage until payments are brought current. The term for these ongoing payments is premiums, referring to the series of payments over time.

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