What is the amount you pay monthly, quarterly, semiannually or annually to purchase different types of insurance?

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

Answer: (D)

Premium is the amount you pay to purchase and maintain an insurance policy. It can be paid monthly, quarterly, semiannually, or annually, and this regular payment keeps the coverage active regardless of how much you use the insurance.

Copays are fixed amounts paid at the time you receive a service, like a doctor visit. Deductibles are the amount you must pay out of pocket before the plan starts paying. Coinsurance is the share of costs you owe after the deductible is met, usually a percentage. So the ongoing payment to keep the policy in force is the premium, not the other cost-sharing amounts.