What term describes the regular payment made to maintain an insurance policy?

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Multiple Choice

What term describes the regular payment made to maintain an insurance policy?

Regular payments to keep an insurance policy active are called the premium. This is the amount you pay on a schedule—monthly, quarterly, or annually—so the insurer continues to provide coverage. A deductible is the amount you pay out of pocket before benefits kick in for a given claim, a co-payment is a fixed amount you pay at the time of receiving a service, and a claim is a request to the insurer for payment of a covered loss. Paying the premium keeps the policy in force, regardless of whether you file any claims.

Regular payments to keep an insurance policy active are called the premium. This is the amount you pay on a schedule—monthly, quarterly, or annually—so the insurer continues to provide coverage. A deductible is the amount you pay out of pocket before benefits kick in for a given claim, a co-payment is a fixed amount you pay at the time of receiving a service, and a claim is a request to the insurer for payment of a covered loss. Paying the premium keeps the policy in force, regardless of whether you file any claims.

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