In health insurance terms, what does the premium refer to?

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Multiple Choice

In health insurance terms, what does the premium refer to?

Premium is the ongoing amount you pay to keep your health insurance policy active. It’s usually billed monthly (though some plans allow quarterly or annual payments) and you pay it regardless of whether you use medical services. This is different from what you pay when you receive care (copays or coinsurance) and from the deductible, which is the out-of-pocket amount you must meet before the insurer starts sharing costs. A lump-sum payment at claim time would describe a different payment arrangement and is not the premium. So, the premium is the regular price of having the policy.

Premium is the ongoing amount you pay to keep your health insurance policy active. It’s usually billed monthly (though some plans allow quarterly or annual payments) and you pay it regardless of whether you use medical services. This is different from what you pay when you receive care (copays or coinsurance) and from the deductible, which is the out-of-pocket amount you must meet before the insurer starts sharing costs. A lump-sum payment at claim time would describe a different payment arrangement and is not the premium. So, the premium is the regular price of having the policy.

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