which is always a cost when buying insurance?\n○ premium\n○ deductible\n○ co - payment\n○ payout
which is always a cost when buying insurance?\n○ premium\n○ deductible\n○ co - payment\n○ payout
Answer
Brief Explanations:
To determine the always - present cost when buying insurance, we analyze each option:
- Premium: The premium is the amount the policyholder pays regularly (e.g., monthly, annually) to the insurance company to maintain the insurance policy. It is a mandatory cost to have the insurance coverage.
- Deductible: A deductible is the amount the policyholder has to pay out - of - pocket before the insurance company starts to pay for a claim. It is not a cost that is always incurred in the sense of a regular payment for having the insurance; it is only relevant when a claim is made.
- Co - payment: A co - payment is a fixed amount the policyholder pays for a specific service (like a doctor's visit) when using the insurance - covered service. It is not a cost associated with just buying the insurance; it is for using the insured services.
- Payout: A payout is the amount the insurance company pays to the policyholder (or a beneficiary) when a claim is approved. It is money received by the policyholder, not a cost of buying insurance.
Answer:
A. premium